S7582 CONGRESSIONAL RECORD — SENATE June 13, 2007 families, creating a federal price Certainly, the Federal Government other fuels do. So we hope to broaden gouging law is not the answer. The au- needs to be a leader in that area, and that definition so the Senate itself is thority already exists for investiga- this bill certainly contemplates that. not defining specific fuels. tions into price gouging, and I am con- But let me say this: In a rush to do We have tremendous capabilities in cerned that price gouging is simply a this—and I am, again, thrilled we have our country through entrepreneurship. code word for ‘‘price controls.’’ Such a a bipartisan effort underway—I think We have tremendous capabilities policy failed in the past and will fail in we need not lose sight of the fact that through coal-to-liquid technology that the future. overall our goal should be to certainly we can do in an environmentally I also have concerns about the sec- make sure whatever we do with energy friendly way. We have other types of tions of the legislation that increase policy raises the gross domestic prod- technologies that are being developed. corporate average fuel economy stand- uct of our country over time, so these I think we as a country should set ards, and I have concerns that this bill young people who are here as pages goals and standards and let entre- does nothing to address our lack of do- today have a future that is even bright- preneurs and the business community mestic energy production in areas er than it is today, that what we do help fill the void to cause our country where production is possible and envi- certainly causes our country to have to be energy secure, to cause our coun- ronmentally responsible. energy security so we are not depend- try to help grow the GDP, and to cause We are in a situation where our Na- ent on regimes around the world that our country to make sure what we do tion’s energy supply does not meet our are not friendly to our country, and causes us to be environmentally friend- Nation’s energy demand, and, while we that whatever we do causes us to be en- ly. must work to reduce our consumption, vironmental stewards, that we do not So we will be putting forth that we should also work to produce as damage our country. amendment. I hope my colleagues will much energy domestically as is pos- I want to tell you that I had the join me in helping us broaden these sible. great privilege of spending time in Eu- definitions so we can harness the very Mr. President, I yield the floor. rope 2 weeks ago, looking at some of best we have in our country. The ACTING PRESIDENT pro tem- the energy policies some of our friends I yield my time. pore. The Senator from Tennessee is and allies have put in place. While on f recognized. one hand I admire greatly their effort Mr. CORKER. Mr. President, I rise to do less damage to the environment, CONCLUSION OF MORNING today in support of America’s energy sometimes there are adverse con- BUSINESS security, and I wish to speak a moment sequences to what occurs. I think what The PRESIDING OFFICER (Mrs. about the bill that is before us and talk we have seen over the short term is a MCCASKILL). Morning business is about some of the pluses it brings into greater dependence on fuel sources that closed. our debate and also talk about some will cause them to be in some ways f additions I think are very necessary. more dependent on regimes that could I am very excited that the Energy not in some ways be friendly to their CREATING LONG-TERM ENERGY Committee, which I am on, has passed future. ALTERNATIVES FOR THE NA- out to this body a bill that talks about I think we need to keep these things TION ACT OF 2007 increasing the ability of our country to in balance. So while we look at alter- The PRESIDING OFFICER. Under rely upon alternative fuels. I think we native fuels that are going to be friend- the previous order, the Senate will re- have set some very good goals in that ly to our environment and cause us to sume consideration of H.R. 6, which the area. I believe that is an excellent start be less dependent on those that are clerk will report by title. to cause us to be less dependent on pe- not, I think we ought to also focus The assistant legislative clerk read troleum, to be far more dependent on heavily, in this bill, on increased pro- as follows: biofuels in our country. duction. Here in America, we need to A bill (H.R. 6) to reduce our Nation’s de- I know the State of Tennessee, which do our best to boost fuel supply by in- pendency on foreign oil by investing in I proudly represent, will be a big part creased production. We need to in- clean, renewable, and alternative energy re- of making sure that happens. As a mat- crease our refining capacity. We really sources, promoting new emerging energy ter of fact, our State is working to have not had major increases in refin- technologies, developing greater efficiency, make sure we are a substantial part of ing capacity in this country since the and creating a Strategic Energy Efficiency our country’s goal in meeting these ob- 1970s. There are additions that are tak- and Renewables Reserve to invest in alter- jectives. ing place. native energy, and for other purposes. I know cellulosic research is taking I know many people are talking Pending: place in Tennessee and throughout the about the high price of gasoline. Cer- Reid amendment No. 1502, in the nature of country, which will benefit all Ameri- tainly, one of the reasons for that is a substitute. cans in the process, as we take the our country has a limited ability to ac- Inhofe amendment No. 1505 (to amendment pressure off corn-based ethanol, which tually refine petroleum in a way we No. 1502), to improve domestic fuels security. is a big part of what we are doing in can use it in our vehicles. That is AMENDMENT NO. 1505 our country. I am so thrilled for the something we as a country need to ag- The PRESIDING OFFICER. Under corn farmers and others across Amer- gressively pursue. the previous order, the time until 11:45 ica who are playing a part in our en- The other thing we need to do in this a.m. shall be for debate on amendment ergy future, but I know that cellulosic bill—and I plan to offer an amendment No. 1505, offered by the Senator from is going to be a big part of what we to deal with this issue. In some ways, Oklahoma, Mr. INHOFE, with the time need to do to even increase our coun- in this bill, in focusing on alternative equally divided and controlled between try’s ability to produce alternative fuels, we are trying to pick winners the Senator from Oklahoma, Mr. fuels. and losers. We are saying certain types INHOFE, and the Senator from Cali- I also know this bill we are contem- of ethanol are the types of alternative fornia, Mrs. BOXER, or their designees. plating does a great deal to focus on fuels we need to be pursuing and those Who yields time? carbon capture and storage. It also al- only. What I would like to do is add— Mr. ENZI. Madam President, on be- lows our country to actually assess the and what I will do through an amend- half of Senator INHOFE, I yield myself various caverns throughout our coun- ment, and hopefully, it will pass this 10 minutes. try to really look at how much storage body—is to cause the Senate to actu- The PRESIDING OFFICER. The Sen- capacity our country has as it relates ally set standards, standards that ator from Wyoming is recognized for 10 to storing CO2 emissions in order to cause fuels to be environmentally minutes. make sure we do no further damage to friendly, to emit less carbon, to emit Mr. ENZI. Madam President, I rise to our environment. less other types of pollutants, and at talk about the Inhofe amendment, I know this bill also really focuses on the same time be fuel efficient, to pro- which would increase the possibility energy efficiency standards—some- vide the amount of energy, if you will, that we could have increased refining thing all Americans need to embrace. that really meets the standards these in the United States. Refining of oil

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7583 produces more gasoline, and more gaso- built. They make those changes in a Horn Valve, that will make the refin- line will bring down the price of gaso- way that is environmentally sound. Op- ing process much more capable and line. ponents of this legislation suggest that also environmentally better. But un- We can’t have a serious discussion is not the case and that environmental less we can get rid of that single con- about energy without discussing the laws will be pushed aside. Those claims struction of refineries, we are going to fact that it has been more than 30 are false. The Environmental Council have shortages of gas twice a year im- years since the last oil refinery was of States, which represents State de- mediately, and more often in the fu- built in the United States. There has to partments of environmental quality, ture. I do have a lot of confidence that be a reason for that. Although a num- clearly stated in a letter that ‘‘the Gas there can be not only coal to liquids, ber of our Nation’s refiners have PRICE Act does not weaken environ- but coal to liquids with a little bit of worked on expansions, they simply mental laws.’’ That act is the one that invention can be done even better than can’t keep up with the growing de- is in Senator INHOFE’s amendment. other kinds. mand. In addition to this, the council, along We need to worry about the natural It is clear that something is wrong with the National Association of Coun- gas supply for this country. A lot of with a permitting process when it is so ties, acknowledged that the Gas PRICE States are placing a huge emphasis on burdensome it prevents the construc- Act streamlining provisions are in natural gas as the cleanest fuel, and it tion of that which is so vital to our Na- compliance with State and local gov- is. But there is only one State that is tion. Because energy fuels our econ- ernments. producing more natural gas than in omy, we need to stop with the rhetoric If this were the only positive section previous years, and that is the State of and take some real action. of the Gas PRICE Act, it would be wor- Wyoming. That will not go on forever. I have to tell my colleagues that I thy of our support, but this legislation If we use it to produce electricity, we have faith in America. I have faith in also addresses a second aspect that I are going to run out of natural gas. So the young people of America. I have believe is missing from the underlying those people across the country who faith in the inventors in America, who bill. That aspect is the incentivizing of are using natural gas to heat their are of all ages. I am aware of a com- coal-to-liquids technologies. homes should be particularly con- pany in Sheridan, WY, named Big Horn As drafted, the legislation does noth- cerned. Valve. They have been working on ing to advance the development of I know one company was looking at some refinery problems, including coal-to-liquids plants. That is the over- having some peaking power for Rapid leaks in refineries, and they came up all bill, not the amendment. As a mem- City, SD, and they were going to do it with a valve that doesn’t have a knob ber of the Senate Energy Committee, with natural gas. But the board of di- that you turn on the outside of the Senator Craig Thomas and JIM rectors, as they looked at it, found out pipe. Everything is internal in the pipe, BUNNING worked hard to move this that the time they needed the peaking and it has a special venturi nozzle in issue forward and offered an amend- power was in the middle of winter when there that doesn’t take up the entire ment during the committee’s consider- it was cold because people there use inside of the pipe but can still flow as ation of the biofuels legislation to set a some electricity to heat with. But much oil as a flow pipe. The way it blending requirement for coal-derived what they discovered was that the works is to turn it off magnetically; it fuels at 21 billion gallons for the year amount of natural gas to provide peak- twists and the two spots don’t line up. 2022. Is it possible? Absolutely. Unfor- ing power in winter in Rapid City Since it is completely internal to the tunately, this amendment failed by one would be an equivalent amount of gas pipe, there can be no leakage. It is just vote, and so it wasn’t included in the to what the whole city of Rapid City one small solution to some of the prob- bill. uses to heat homes during that same lems that can be solved. The Gas PRICE Act addresses this cold spell. I would mention that with the Na- vital issue by requiring the Environ- A lot of natural gas has to be used if tional Institutes of Health, we have mental Protection Agency to establish it is used to produce electricity. We faith in the inventiveness of people. We a demonstration to assess the use of can invent better ways to do that. We doubled the budget for research for the Fischer-Tropsch, diesel and jet fuel, as can come up with coal to liquids. We National Institutes of Health. I can tell an emission control strategy. Further- can increase our refineries. I hope we my colleagues that today we have 654 more, it provides incentives to the Eco- will find ways to encourage that rather cancer treatments in clinical trials. nomic Development Administration to than discourage that if we are going to That is what happens when we build coal-to-liquid refineries and com- truly have an energy policy. incentivize people to come up with so- mercial scale cellulosic ethanol refin- I yield the floor and reserve the re- lutions. eries at BRAC sites and on Indian land. mainder of my time. We need to do that with energy. We These important steps will help The PRESIDING OFFICER. Who are in the midst of a huge energy cri- jump-start an industry that will help yields time? sis. China recognizes it. China is buy- reduce our Nation’s dependence on for- Mr. ENZI. Madam President, I sug- ing every available fuel source they eign energy barons. Coal is our Na- gest the absence of a quorum, and I ask can get their hands on. My colleagues tion’s most abundant source. As I men- unanimous consent that the time be probably saw where they tried to buy a tioned earlier, we have more Btu’s in equally divided. company in California. You have prob- my county in Wyoming alone than all The PRESIDING OFFICER. Without ably seen where they bought supplies of Saudi Arabia. Using coal to produce objection, it is so ordered. in Canada. They know the future of the diesel and jet fuel will take our energy The clerk will call the roll. economy is requiring—requiring—en- security out of the hands of Hugo Cha- The assistant legislative clerk pro- ergy, particularly fuel to transport vez in Venezuela and others who seek ceeded to call the roll. things. to harm our economic interests and Mrs. BOXER. Madam President, Senator INHOFE’s amendment recog- put it back in the hands of American could the Chair give us the parliamen- nizes this fact, and it improves the per- citizens. tary situation this morning. mitting process for new refineries. It I am pleased Senator INHOFE has of- The PRESIDING OFFICER. The Sen- establishes an opt-in program for State fered this important amendment. It ad- ate is currently in a quorum call being Governors, requiring the Environ- dresses two areas in which the legisla- equally divided between the two sides. mental Protection Agency to coordi- tion could be improved, and I urge my Mrs. BOXER. I ask unanimous con- nate all necessary permits for con- colleagues to support this approach. sent that the order for the quorum call struction or expansion of refineries. It The two areas are to make it possible be rescinded. provides participating States with to actually expand the number of refin- The PRESIDING OFFICER. Without technical and financial resources to as- eries in the United States, and there objection, it is so ordered. sist in permitting, and it establishes are places in the United States where Mrs. BOXER. Madam President, it is deadlines for permit approval. those can be built, and safely built. I my understanding now there is how These vital changes will make it pos- also think there can be some inven- much time remaining until the vote on sible for new refineries to finally be tions, such as I mentioned with Big the Inhofe amendment?

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7584 CONGRESSIONAL RECORD — SENATE June 13, 2007 The PRESIDING OFFICER. The vote streamlined procedure in 2005. They Government gets no money. That was is at 11:45. The Senator’s side has ap- never took advantage of it. Now, Sen- the idea behind the Surplus Federal proximately 30 minutes remaining. The ator INHOFE is giving them more Lands Act. The Federal Government Republican side has approximately 21 streamlining procedures, and he is ex- should get some money from the pri- minutes remaining. empting these energy companies from vate sector. Oh, no, they get the land Mrs. BOXER. Madam President, I every single environmental law that free, these energy companies. That is rise to debate this Inhofe amendment was signed into law by Republican because they are hurting so much. and, in the strongest possible terms, Presidents and Democratic Presidents. They are hurting so much that we are make a few points to my colleagues. Let me tell my colleagues the laws going to give them the land free. When you strip it all away, this that are waived in the Inhofe amend- On Indian land, they get back 110 per- amendment is a giveaway—a giveaway ment. I say to the American people: cent of their investment, so they actu- to energy companies at a time when Listen to this because if ever we have ally make money without a penny of they have never had it so good, at a unanimity about what is important to cost. Whoever votes for this amend- time when they have never made so do for the health of our people, it is ment is voting for a giveaway of tax- much money. The CEOs are making $37 when Republican and Democratic payers’ dollars. Whoever votes for this million a year; $16 million a year; Members of the Congress and Presi- amendment is voting for an open-ended Exxon, a $39 billion profit—billion-dol- dents sign these laws and pass these cost that isn’t even stated in the bill. lar profit; Shell, a $25 billion profit; laws: The Clean Air Act, the Clean Look at the last page of the bill, BP, a $22 billion profit; Conoco-Phil- Water Act, the Resource Conservation ‘‘such funds as may be required.’’ We lips, $15.6 billion; and Chevron, over $17 and Recovery Act, the National Envi- know some of these energy plants will billion. The CEO, Lee Raymond, of ronmental Policy Act, the Safe Drink- cost $4 billion for one plant. Let’s say ExxonMobile, received a $400 million ing Water Act. there are 100 pieces of Federal land severance gift. Let me repeat that. One Those are a few examples of Federal that could be redeveloped. You do the man received a $400 million severance laws which are cast asunder by this math. We are busting the budget. You gift, and the Inhofe amendment wants amendment. Who gets the benefit? Not think the Iraq war costs a lot? Take a to give these people more. The Inhofe the American Lung Association, which look at this. And who does the money amendment wants to give these people might, in fact, put in substantial pre- go to? The same people who are charg- more, even after, in the 2005 Energy cautions that the air is clean, but they ing us in California close to $4 a gallon bill, they already got their streamlined give it to the most polluting industries for gas. provisions. They already got what they in America: the refining and oil indus- So you can stand up here and talk needed. tries. about it all you want, but the bottom Let me tell my colleagues what the Senator INHOFE will say: Oh, we let line is, this is, in many ways, a social- Inhofe amendment does. It gives to the States pass these laws. We say they istic bill, socialism: give away land to those who have, and it gives to energy have to pass substantially equivalent big business, give them the cost of the companies free public land—public land laws. That is not defined. Why on building, in some cases 110 percent re- that belongs to the taxpayers of Amer- Earth waive the laws that are the cor- imbursement, waive all of the Clean ica. It gives them preference to get free nerstone of America’s environmental Air Act, the Clean Water Act that pro- public lands. Not only do they get the protection under both Republican and tects the health and safety of our peo- land free, but in the case of Indian Democratic Presidents? Why waive ple, and who are the most vulnerable? land, they get 110 percent of their costs those laws? Do you think that little of Our moms and dads, our grandmas and reimbursed to them. This is what we America’s families? grandpas, our children. Just ‘‘Katy bar are doing in an Energy bill that is sup- In my State, 9,900 people die every the door’’ with the money. No problem. posed to be good to consumers. year from lung-related disease. And Oh, it is as if we are somehow in the The underlying bill has many provi- let’s talk about some of the chemicals black today when we have deep deficits sions in it. All those provisions are these refineries give off. today. good for the American people, includ- In 2005, refineries emitted over 68 What an amendment to bring to the ing fuel economy for our cars, solar en- million pounds of toxic chemicals, 3.8 floor from my friend—my good friend— ergy on the building of the Department million pounds of known cancer-caus- Senator INHOFE. A similar amendment of Energy. We hope we will have a mod- ing substances, 2.5 million pounds of went down in the committee when he est model project at the Capitol power- toxins that damage the reproductive had the gavel. plant showing that we can, in fact, re- system, and 6.8 million pounds of tox- I say it is economic blackmail for duce the carbon emissions of coal. ins that harm the development of chil- communities that are losing a military These are all bipartisan amendments. dren. base. It chooses an energy project over Senator INHOFE tried to get a similar In California, communities that bor- any other project they might want. I amendment to the one he is now pro- der refineries and chemical plants have say to my colleagues, if they look at posing through the committee. When high concentrations of childhood asth- what these refiners are making, how he controlled the gavel, he couldn’t ma. We should be working to make the well they are doing, we don’t need to even get it out of the committee then, air cleaner, not worse. give them any more incentives. let alone now. So it gives to the oil Let me review what I have said so I want to tell my colleagues a story companies, when they were taken care far. This amendment has a name, and I about my State. Shell Oil owned a re- of in the Energy bill of 2005. am going to read you the name of this finery in Bakersfield, CA. We all sup- I am going to tell my colleagues amendment. The title of this amend- ported that refinery. It made 2 percent what we did for them in 2005. The 2005 ment is the Gas Petroleum Refinery of the gasoline for the cars in Cali- Energy bill has a provision, which is Improvement and Community Em- fornia. Shell Oil announced they were section 392, that allows States to re- powerment Act. I ask, how is a commu- shutting down the refinery. We begged quest EPA to work with them and nity empowered by this amendment? them not to shut it down. Here is what enter into an agreement under which The idea is to allow these new energy they said to us in writing: We are los- EPA and the State will identify steps, plants to go on Federal land that has ing money, and we are shutting it down including timelines to streamline the been surplused. In California, we have because we can’t find a buyer. consideration of Federal and State en- had a lot of these lands, and, by the Lies, those were lies. How do I know vironmental permits for a new refin- way, some of them have been redevel- that? Because we were fortunate ery. Interestingly, even though this oped in the most wonderful way. Ev- enough to have an attorney general of legislation exists, EPA said before my erybody is equal. There are no winners California, at that time it was Bill committee in October—actually, it was and losers. Here we are picking a win- Lokyer, who saw the books. The refin- before Senator INHOFE’s committee be- ner, and the winner is one of the most ery was making a lot of money. We be- cause he was chair at that time—that polluting industries in America. They lieve Shell Oil wanted to shut it down no State had asked EPA to use that get the land free, and the community is because they wanted to squeeze the provision of the law. So they got a left without anything. The Federal supply—squeeze the supply. Guess what

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7585 else. When we caught them on that, This is a big kiss to the oil compa- It is important this amendment be they said: Oh, we are sorry, we made a nies and the energy companies. This is adopted. It does address a critical need mistake; we still can’t sell the refin- a major hug. It would be better if we in this country, and that is for more re- ery. took this up on Valentine’s Day. Well, finery capacity and the need in a lot of We found buyers for the refinery. The count me out. I hope there is a re- places, areas affected by base closure attorney general made sure they adver- sounding ‘‘no.’’ We don’t know the and Indian reservations, for economic tised. They sold that refinery, and that cost. It is not told in this amendment. development. refinery is up and running. We don’t know the impact on the peo- There are a lot of items this amend- So we are going to give away to re- ple. It certainly is not told in this ment would accomplish. It is impor- fineries, to energy companies in this amendment. It picks winners and los- tant to point out that over the past 30 bill—this amendment is all they could ers on Federal land. It doesn’t protect years, the petroleum industry has not ever dream for. They don’t have to pay our people. added a single new oil refinery in the attention to the Clean Air Act, the Madam President, I yield the floor United States. The American public, I Clean Water Act, or the Safe Drinking and reserve the remainder of my time. think, would find it startling that the Water Act. If my colleagues vote for I suggest the absence of a quorum. largest petroleum consumer in the this amendment, they are voting to The PRESIDING OFFICER. The world hasn’t seen one new refinery in open the checkbook to hundreds and clerk will call the roll. the past three decades, which has cre- hundreds of billions of dollars. It could The legislative clerk proceeded to ated a devastating bottleneck in the be as high as a trillion dollars. Who call the roll. delivery of transportation fuels to knows how many of these people will Mrs. BOXER. Madam President, I ask American consumers. take advantage of this opportunity. unanimous consent that the order for Fortunately, the Senate has an op- What do we get? We get sick kids be- the quorum call be rescinded. portunity through this amendment to cause this will waive all these environ- The PRESIDING OFFICER. Without address that issue which is squeezing mental protections. And they are giv- objection, it is so ordered. very hard the wallets of hard-working Mrs. BOXER. I ask that the time be ing away to those who have. Americans across the country. I want to read again the amount of equally divided on that quorum call. Amendment No. 1505, which is pend- The PRESIDING OFFICER. Without money some of these executives have ing before the Senate, would enact im- objection, it is so ordered. made. Valero Energy, the top executive portant measures to boost domestic re- The Senator from South Dakota. fining capacity and provide certainty in 2005, William Greehey, took home Mr. THUNE. We are not in a quorum $95.2 million. This is one person, for the industry and the public. call? First, the amendment would set folks—$95.2 million. Occidental Petro- The PRESIDING OFFICER. We are deadlines for refinery permit approval. leum chief Irani took home $81 million not in a quorum call. in 2006. Oh, these poor people. Their Mr. THUNE. Madam President, I For too long, proposed refinery businesses aren’t doing good enough. wish to speak, if I may, to the amend- projects have met slow deaths due to We have to give them more. We have to ment offered by my colleague from endless delays in the bureaucratic per- mit process. make life easier for them. Oklahoma, Senator INHOFE. It is impor- Second, this amendment would pro- What about the people who pay at tant that in this whole debate on the vide States with much needed tech- the pump? That is why the underlying bill that we talk about the solutions nical and financial resources to assist bill is so good because it has MARIA that are important to this country’s in refinery permitting. The process of CANTWELL’s antigouging law. By the independence today on foreign energy refinery siting is time-consuming, way, the President has said he doesn’t and the need to get away from that and complicated, and financially straining like the antigouging law. He might become energy independent and lessen on State budgets that are already have to veto this entire bill. That our dependence on foreign energy and shows you where people stand around stretched thin. that we also talk about actions we can This amendment also protects States here. Republicans want to give away to take that will lower energy costs for the oil companies, to the refiners, to rights by giving individual States the people in this country. opportunity, as I said earlier, to opt in the energy companies, and take away I appreciate the fact that the under- to a refinery permitting program. Con- clean air protections from the people, lying bill has a number of provisions in trary to what the opponents are say- take away land from the taxpayers, it that are good. There are provisions ing, there are no mandates in this leg- taxpayers’ money to fund these in the bill I will be supporting. I have islation. Participating States can vol- projects. Count me out, and I hope a series of amendments I will be offer- untarily request the Environmental count out the vast majority of the peo- ing that will improve the availability Protection Agency to coordinate all ple here. of renewable energy in this country. You can put any face on it. One thing I also wish to speak in support of permits for construction or expansion that gets me is how the Republican amendment No. 1505 because I believe of a refinery. The importance of expanding refinery side is supposed to be so fiscally re- fundamentally it would greatly im- capacity to provide affordable and reli- sponsible. Let’s look at the last page of prove our Nation’s stagnant oil refin- able supplies of transportation fuel this amendment. They will tell you ing industry, boost the development of cannot be overstated. I want to show a now how much they are going to pay coal-to-liquid technology, and accel- chart of something that was printed in for this bill. It is on the last page of erate the development of the next gen- BusinessWeek on May 3, 2007. This is this amendment. Here it is: ‘‘Subtitle eration of biofuels. E—Authorization of Appropriations. As to the underlying amendment what they said: There are authorized to be appro- talked about by my colleague from Because of high costs and a lack of public priated such sums as are necessary to support, refiners haven’t built an entirely California, first, there are no mandates new plant since 1976. While they have been carry out this’’ amendment. in this bill. These are things the State expanding existing plants, the industry isn’t What does that mean? I already told can do. They can opt into this. Obvi- keeping pace with growing demand. my colleagues it costs $4 billion to ously, the incentives in this amend- I would also like to show another build one of these energy plants—just ment do not go to oil companies, they chart of something that was printed re- one. It is 100 percent Federal pay on In- go to State and local governments. cently in the Wall Street Journal, and dian land plus 10 percent on top of it, Frankly, this is an important point, it said this: and 88 percent is the minimum number that this is directed to areas that have The causes of higher gas prices include $65 on Federal land that is not Indian land. been affected by base closures and also per barrel oil caused by rising global demand You get the land, you get the cost back Indian reservations, which in my State and geopolitical tensions; a record high U.S. to build the plant, you get to waive all are desperately in need of economic de- gasoline consumption of 380 million gallons a the environmental laws, and you get a velopment. This is the type of eco- day; and refined gasoline shortages caused streamlined process, which they al- nomic development that will fit very by Congressional rules and mandates. ready have the ability to get under the well in a lot of places in South Dakota Now, my constituents know this 2005 Energy bill. that qualify. problem firsthand. Inadequate refining

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7586 CONGRESSIONAL RECORD — SENATE June 13, 2007 capacity has a real impact at the local Exchange Commission to research and to address what is causing that prob- level, and I will give just a little anec- report to Congress on the establish- lem. dotal evidence here from South Da- ment of a renewable reserves classifica- As I said earlier, I will be offering a kota. tion system for cellulosic biofuels feed- number of amendments that will in- For the past month and a half, sev- stocks in the United States. crease and advance the production of eral key gasoline terminals in my The idea of a renewable reserves clas- biofuels energy in this country because home State of South Dakota were lit- sification system was first discussed I believe so profoundly in its impor- erally out of gasoline for multiple days during an Agriculture Energy Sub- tance as part of our energy supply. But at a time. Widespread outages were re- committee hearing I held in Brookings, this particular amendment is critical portedly caused by limited supplies due SD, earlier this year. An expert witness as well because it addresses a funda- to refinery shutdowns and routine re- from Ceres, Inc., an industry leader in mental problem that exists in America pairs in other parts of the country. The the development of transgenic today; that is, a lack of capacity, refin- ripple effects of this gasoline supply switchgrass seed for cellulosic ethanol ery capacity, to make sure enough gas- disruption were felt throughout the en- production, testified that a standard oline is making it to its destination, to tire eastern part of my State. As the means for measuring renewable re- places even as remote as South Da- pipes ran dry and terminals emptied, serves on a per-barrel-of-oil basis kota, so that the people who drive gasoline wholesalers were forced to would greatly incentivize private sec- across my State can have access to af- travel great distances and manage tor investment in the next generation fordable fuel to make sure they can get logistical bottlenecks at the few pipe- of advanced biofuels. to the places they need to get to, and line terminals with available refined The President of Ceres, Inc., Richard that the lack of affordable fuel does product. In the meantime, gasoline Hamilton, describes the renewable not choke our economy by continuing prices soared at the retail level across classification system as: to force us to pay these exorbitant South Dakota, and consumers in my An independent metric by which energy prices for gasoline. State were forced to pay more at the companies, and the market, may measure re- So I support the amendment of the pump. newable reserves in barrel-of-oil equivalents Senator from Oklahoma, amendment The recent events in South Dakota just as they measure proved reserves today. No. 1505, and I urge my colleagues here are a prime example of the need to in- He continues by stating: in the Senate to do so as well. It is im- crease refining capacity in the United A renewable reserves classification system portant for a lot of reasons—because it States. These events also underscore could well be the catalyst America’s tradi- brings economic development to areas the need to move beyond petroleum for tional providers of liquid transportation that really need economic develop- our transportation fuel needs. fuels require to invest in cellulosic biofuels ment, those areas which have been af- technology and may be the Federal Govern- The amendment offered by Senator fected by base closures and Indian res- INHOFE moves our country toward ment’s least expensive way to hurry the cel- lulosic biofuels industry to maturity. ervations—and because my State des- greater energy independence by pro- perately needs that form of economic viding Economic Development Admin- Certainly a proposal that could re- sult in such a dramatic advancement in development and job creation. So I istration grants for infrastructure im- urge my colleagues to support this provements to accommodate cellulosic our biofuels industry is worthy of con- sideration by the Securities and Ex- amendment. ethanol refineries at Base Closure and Madam President, I yield the floor. Realignment Commission sites and In- change Commission and is certainly Mr. INHOFE. Madam President, I dian lands. worthy for inclusion in a bill that calls would inquire as to the time remaining As my fellow Senators are all well for a historic increase in renewable on both sides, please. aware, the underlying bill includes a fuels production. If we are serious renewable fuels standard of 36 billion about advanced biofuels production, we The PRESIDING OFFICER. The Sen- gallons by the year 2022. In order to must consider effective approaches, ator has approximately 9 minutes re- meet this goal, we need to enact poli- such as the amendment offered today maining, and the Democratic side has cies that dramatically increase the de- by my colleague from Oklahoma, that approximately 13 minutes remaining. velopment and production of cellulosic would boost the production of advanced Mr. INHOFE. Madam President, I ethanol. biofuels. would like to go ahead and be recog- By providing EDA grants that sup- This amendment is important be- nized for a few minutes, and I would port cellulosic ethanol production in cause, as I said earlier, it addresses a ask that the Chair stop me when there communities in need of economic de- critical problem and shortage that we is 5 minutes remaining. I would like to velopment, amendment 1505 provides have in America today; that is, a lack remind the other side that our protocol targeted rural and economic develop- of refinery capacity. We need more ca- or system is that the author of the ment and places our biofuels industry pacity. Now, frankly, it would be great amendment should conclude debate, so on course to reach the strengthened re- if the folks I represent in South Da- I would like to have the last 5 minutes. newable fuels standard. kota could get to their destinations by First of all, I look at this and I listen In addition to the EDA grants for cel- walking or riding bikes. Unfortunately, to the arguments from the junior Sen- lulosic ethanol refinery development, we have long distances to cover in my ator from California and I hear the this amendment includes a first-of-its- State. We have to drive automobiles, same things over and over again. Last kind provision that may greatly en- and we have to use fuel to power our night, we debated this at some length. hance private sector investment in re- automobiles. When you have a refinery Every time, she would make a state- newable fuels. This amendment will problem like we have in America ment, and we would respond to the begin to assess our Nation’s renewable today, that limits the amount of gaso- statement. reserves of biomass cellulosic ethanol line that can be shipped through the Let me just put a chart up here. I feedstocks so that the public and en- pipeline to destinations in my State, think it is important for people to real- ergy companies have a realistic under- and that drives the cost of gasoline ize there are some choices. We are not standing of total U.S. renewable re- higher and higher. Because of that willing to add to refinery capacity here serves. Energy companies’ stock prices shortage and because the wholesalers in the United States. We have here the rise and fall depending on their de- have to go to distant places to get it, it refining capacity and the growth of clared proven reserves. This process, adds to the cost of our economy, and that refining capacity from other coun- which has been in place since 1978, pro- that affects the day-in and day-out tries. We have Iran, Iraq, Libya, Nige- vides tremendous incentives for explo- lives of the people in my State of ria, Russia, Saudi Arabia, Sudan, and ration, investment, and development of South Dakota and across this country Venezuela. It is bad enough we are de- new sources of traditional hydro- who have to get to their destinations, pendent upon foreign sources for our carbons. whether it is to work or whether it is ability to run this machine we call This straightforward amendment travel for recreation. The reality is America, but these are not the kinds of builds upon these proven market incen- that we cannot continue to abide $3.50 countries you want to depend on. I am tives by directing the Securities and or $4 a gallon for gasoline, and we need sure Chavez is not real excited about

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7587 helping us refine our oil into some- Mr. INHOFE. Madam President, I ask EDA to help communities that want to thing that can be used for transpor- unanimous consent that the order for set up refineries in their communities. tation. the quorum call be rescinded. Let’s keep in mind, this is not just I would like to cover a couple of the The PRESIDING OFFICER. Without oil refineries. We are talking about oil things the junior Senator from Cali- objection, it is so ordered. refineries but also cellulosic biomass fornia has said, and I know what is Mr. INHOFE. Madam President, it is refineries, we are talking about coal- going to happen: As soon as I do this, my understanding there will be equal to-liquid refineries—all refineries to she will come back and say the same time taken from each side in this case, give us the availability of fuels for the things over again, because we have so I would invite the majority to come transportation this country needs. heard these same arguments. in and make their remarks and would If we do not have that, the price of First of all, she says it is a disastrous appreciate it; otherwise, I would be de- gas at the pump is going to continue to amendment because it is a taxpayer nied my opportunity to close debate on go up. I suggest this is going to be the giveaway to the oil companies; we my amendment. critical vote, in terms of energy, for don’t have to give away the store to In the meantime, I ask unanimous this entire legislative session. It is the oil companies. Well, the fact is that consent that during the quorum call, going to come back to haunt a lot of no money goes to any oil companies or, the time be taken from the other side. people in 2008. I know the Democrats in fact, to any corporations in any way The PRESIDING OFFICER. In my are generally much more disciplined whatsoever. The only funding of the role as a Senator, I will object. than the Republicans are. They will bill is financial and technical resources Mr. INHOFE. Madam President, I un- say you have to vote against this to a State or tribal department of envi- derstand what is customary; I am just amendment, make up things such as ronmental quality or funds to an eco- saying that we are entitled to close de- you are helping oil companies, which nomically distressed community af- bate. you are not. Whatever the case is, the fected by BRAC. Apparently, the Senator from Cali- bottom line is they are going to be tak- Let us keep in mind, when we talk fornia is not going to allow me to close ing away our ability to increase the about BRAC and Indian tribes, we have debate. So let me just say for a few supply of gasoline to run our cars with- a lot of BRAC sites, and I can remem- minutes here that I was going to go in America. This will be a major issue ber Members standing on the floor say- through every argument the Senator in the 2008 campaigns. I encourage peo- ing, during the base realignment and from California has made. ple to do something about this problem closure process: They are going to be For example, first of all, I already did and to vote for the Inhofe amendment closing some of the military installa- the first one where she talks about sub- expanding our refining capacity. tions in my State. Well, what is a log- sidizing oil companies. No corporation I yield the floor. ical thing you can do to replace the in America is being subsidized by this. The PRESIDING OFFICER (Mr. economic loss of a closed facility? It is She said also, we don’t want to become CASEY). The Senator from New Mexico. to put—if we can encourage the local a China, where they do not care about Mr. BINGAMAN. Mr. President, I ask community to do it—a refinery there. the people and how they suffer. We that I be allowed to use 3 minutes from You don’t have to clean it up to the don’t want to go there. Politicians are the time of the Senator from Cali- same standards you would have to prone to hyperbole, but the junior Sen- fornia. clean it up otherwise. It is a logical ator from California has reached a new The PRESIDING OFFICER. Without thing. So those people who want coal- level. Nowhere in this bill or any other objection, it is so ordered. to-liquids and commercial-scale cel- I would consider would I seek to make Mr. BINGAMAN. Mr. President, I lulosic ethanol facilities can have the United States similar to China. would like to speak briefly against the them. By the way, talking about China, one Inhofe amendment. I do believe there It does authorize the EPA to initiate of the problems we are having right are several substantial problems with a new emissions control demonstration now is that while we do not have the it. First of all, the underlying assump- project, but it doesn’t offer the oil refining capacity, they do. While we tion is that the reason we do not have companies anything. are not building generating plants, enough refining capacity in this coun- The lack of sufficient refinery capac- they are. While we have gone 15 years try is we cannot find places to put re- ity in the United States is why we are without adding a new coal-fired gener- fineries. That is not the reality. We experiencing high prices today. I think ating plant in the United States, China have had various hearings in the En- it is inconceivable that any Member of is cranking out one every 3 days. ergy Committee. The companies that this body would come in and deny us, The argument that was made was are engaged in refining oil into gaso- the United States, the right to expand American families who want their line and other products are not short of our refinery capacity to do something health protected do not want us to places to put those refineries. They about the supply problem we have and waive every single environmental law look at a whole variety of issues—the then turn around and say: Well, we that protects the quality of the air economics in particular—to determine don’t want to be dependent on foreign they breathe inside their bodies. They whether to build new refineries or ex- countries for our ability to run this also do not want to waive any single pand refining capacity. It is not a fail- machine called America. environmental law. We are not doing ure to have a BRAC military base or a In this bill, in the underlying Energy that. We are not waiving any environ- failure to have an Indian reservation bill, without this amendment, we don’t mental laws with this bill. they can put these on. really address the problem today. We Let me tell you something that is se- The other thing is location. They talk about the future, and we talk rious. I warn people right now, this is need to locate refineries where the about conservation. This is good, and going to be considered to be maybe the pipelines are. They need to locate re- we want to do this. We talk about most significant vote in the 2008 elec- fineries where the demand is. Clearly, standards for automobiles and all that. tions. For people to say we do not want that is not contemplated as part of this But people in my State of Oklahoma America to have refining capacity as well. want to do something about the $3 a when we have a bill that will allow Another part that concerns me great- gallon for gasoline right now that is them to have the refining capacity and ly is the notion that we would be mak- there. increase the supply—the old theory of ing grants to support these projects The PRESIDING OFFICER. The Sen- supply and demand still works—those which exceed the cost of the projects. ator has 5 minutes remaining. people who will vote against this will That strikes me as very unusual. In the Mr. INHOFE. With that, I retain the forfeit your right to complain about underlying bill, we do have some lien remainder of my time, and I suggest the dependency on foreign oil. This is programs, where the Government will the absence of a quorum. going to be a major, maybe the major step in and guarantee 80 percent of the The PRESIDING OFFICER. The campaign issue of the 2008 cycle. loan that is required to build a project, clerk will call the roll. I suggest we spent a lot of time on for example. We do not have anything The legislative clerk proceeded to this bill. We do not have any money similar to the provisions that are in call the roll. going to oil companies. We do allow the this bill, which say the Federal share

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I think they will ac- Senator FEINSTEIN has told me she tional award in connection with the tually be producing and exporting that opposes the Inhofe amendment. I think grant to the recipient of an additional product sometime this year. They are it is important that I make that point. 10 percent on top of that. going to produce 100 million gallons of All you have to do is look at the title How it benefits the American tax- biodiesel in this next year—20 years, 12 of this amendment: The Gas Petroleum payer to pay 110 percent of the cost of months. That is more capacity of bio- Refiner Improvement and Community one of these refineries I cannot see. So diesel than was produced in the whole Empowerment Act. You ask yourself: I think the amendment is flawed in United States from a variety of OK. What are we giving the gas petro- several respects. sources. leum refiners that they do not have Obviously, we all want to see addi- This is a very aggressive effort of right now, that they did not get in the tional refining capacity built. I think building alternative fuel refineries. 2005 Energy bill, when they got all what we need to be sure of is that the Let’s be honest, God only gave the kinds of streamlining and everything regulatory regime in place is such that United States 3 percent of the world’s they wanted and all kinds of money it encourages and provides an incentive oil reserves, so the notion that some- and all kinds of grants and the rest? for the companies that are in the refin- how we are going to drill our way with This is a giveaway to the people who ing business to build that additional fossil fuel to get off this foreign oil ad- are gouging us at the pump. That is the refining capacity. It is not efficient to diction is not going to happen. But we first point. Yes, life will improve for say we, the Federal Government, are do not have to throw out our environ- gas petroleum refiners, who have it going to finance 100 percent of a mental laws to produce alternative very good. project to an Indian tribe and they are fuel. We are in the process of doing al- Now, let’s take the second part, the going to go into the refining business; ternative fuel. Community Empowerment Act. Your or we, the Federal Government, are If someone wants to meet all the en- communities and mine and the commu- going to provide 80 percent plus 10 per- vironmental standards and build a new nities in Washington State and, frank- cent, or 88 percent of the cost to some fossil fuel refinery, I am not opposed to ly, in Oklahoma and all over this coun- kind of local municipality and they are that, but I want people to be aware try, I believe those communities will going to go into the refining business. that this is what is at the heart of this be hurt by this bill because it says That is not going to happen. amendment, to throw out these envi- there will be a giveaway to energy I urge my colleagues to oppose the ronmental values that everybody else companies, a giveaway of taxpayer- amendment. in America wants to live by if they owned land, former BRAC land, former I yield the floor and reserve the re- want to have economic development. federally owned lands that are now in mainder of Senator BOXER’s time. Why should the oil industry receive the BRAC procedure. I suggest the absence of a quorum. this particular privilege of waiving en- A lot of communities want to sell The PRESIDING OFFICER. The vironmental statutes, just to have that these lands. They want to use these clerk will call the roll. benefit? lands for economic development. They The legislative clerk proceeded to Let’s keep in mind that alternative have plans for these lands, and yet this call the roll. fuels are making those commitments, particular project of building an energy Ms. CANTWELL. Mr. President, I ask meeting those environmental stand- plant would take precedence over local unanimous consent the order for the ards, and have produced 140—either un- control. It is Federal control from quorum call be rescinded. derway today or in the process, Washington. The PRESIDING OFFICER. Without through the permit process—to develop I call this a socialistic amendment. objection, it is so ordered. 140 new alternative fuel refineries. Why do I say it is a socialistic amend- Ms. CANTWELL. Mr. President, I That is progress in America and we ment? It gives these big companies free rise to speak against this amendment. should keep going. But we do not need land, and then it pays for the building I have been listening to the debate. this amendment to do that. of their energy plants. Can you imag- While I think it is very important we I ask unanimous consent that there ine this? I see the chairman of the move forward in our country on a new be 6 minutes equally divided for de- Budget Committee coming on the energy policy and new direction, I bate, with Senator INHOFE controlling floor. I want to tell him one thing think we must do so in a safe, respon- the final 3 minutes. about this amendment because yester- sible way. That is, whatever we are The PRESIDING OFFICER. Without day he talked to us Democrats in the doing, we need to keep our environ- objection, it is so ordered. Democratic caucus. I hope he doesn’t mental laws and processes in place: the Mrs. BOXER. Mr. President, I was mind if I say he really told us to use Clean Water Act, the Clean Air Act, confused about the time. If I may make caution on these amendments. the Safe Water Act, the Conservation a parliamentary inquiry before my What are they going to cost? Let me Resource and Recovery Act—all the time proceeds: I thought I had 9 min- read to my friends the last line of this things that are very important to our utes left on my side; is that not the amendment: There are authorized to be country and to our environment. case? appropriated such sums as are nec- The PRESIDING OFFICER. The Sen- I think we are hearing a lot about re- essary to carry out this title and the finery and refinery capacity. It re- ator now has 6 minutes. Mrs. BOXER. I have 6 minutes. OK. I amendments made. Now, we found out minds me of the electricity crisis we hear you. today, by asking the industry, how had in the West, starting in 2000–2001, Mr. INHOFE. Parliamentary inquiry. much one of those plants will cost. when everybody blamed it on the fact The PRESIDING OFFICER. The Sen- The plant on Indian land—I know my the environmental laws stopped the ator from Oklahoma. friend is interested in that—would be ability to produce supply. When all was Mr. INHOFE. It is my understanding reimbursed or given or paid for 110 per- said and done, we found out it wasn’t there was a unanimous consent agree- cent of the cost of the plant in Federal that; in fact, it was actually the ma- ment giving us 6 minutes equally di- tax dollars, $4 billion; the cheapest, $3 nipulation of supply. So I think it is vided, myself having the last 3; is that billion. That is one plant, not paid for very important we move forward on correct? here. new refinery capacity. In fact, in the The PRESIDING OFFICER. There is So I call it a socialistic amendment. last several years, there have been al- an additional 3 minutes for each side. You get the Federal taxpayer land, and most 140, either built or in the process Mrs. BOXER. An additional 3, so I then you get Federal taxpayer money of being built, new ethanol refineries. would have 6, you would have 3. to build your plant. And, by the way, So they have had no trouble moving Mr. President, yesterday Senator all big environmental laws are waived. ahead, planning new economic develop- INHOFE repeatedly quoted Senator How does that help a community, Mr.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7589 President? Picking a winner, telling able to take care of problems, maybe Mr. INHOFE. Mr. President, I ask them that priority has to be given to an economic problem that is due to the unanimous consent that Senator these sorts of plants, and, by the way, fact that they had to close a military CORNYN and Senator HUTCHINSON be in case communities were concerned base during the base realignment and added as cosponsors of my amendment. that the quality of the air might go closing process, we should be in a posi- The PRESIDING OFFICER. Without down because they are near a refinery, tion to help. objection, it is so ordered. this bill conveniently takes care of I never stated that Senator FEIN- Mr. INHOFE. Mr. President, I ask for that problem by waiving the Clean Air STEIN—with endorsing this bill, she will the yeas and nays. Act, the Safe Drinking Water Act. be a good Democrat and oppose it with The PRESIDING OFFICER. Is there a They say States can pass equivalent her junior Senator. I will say this. She sufficient second? laws. But there is no reason that we said she recognizes we have a serious There appears to be a sufficient sec- should do that in America today. We problem about having a refining capac- ond. have one Clean Air Act, we have one ity in this country, and about—I will The clerk will call the roll. Safe Drinking Water Act, we have one just read it to you from her own press The legislative clerk called the roll Clean Water Act, and there is a reason: release: Today I urged Governor Mr. DURBIN. I announce that the Water travels, air travels. Schwarzenegger to help streamline the Senator from South Dakota (Mr. JOHN- Republican Presidents and Demo- refining permit process in an effort to SON) is necessarily absent, cratic Presidents alike decided—and it relieve gas prices in the State. Mr. LOTT. The following Senators really started under Richard Nixon— All right. She says we have to relieve are necessarily absent: the Senator that we must protect the air and the gas prices by streamlining the process. from Oklahoma (Mr. COBURN), the Sen- water. This act gives everything away That is exactly what happens in this ator from Nebraska (Mr. HAGEL), and that taxpayers have, including the pro- amendment. We want that to happen. the Senator from Arizona (Mr. tection of clean air, including their For anyone to suggest that there is MCCAIN). funding. anything in here that would hurt the The PRESIDING OFFICER. Are there Now, this particular vote is very im- environment, here we have the Envi- any other Senators in the Chamber de- portant for people who care about ronmental Council of States—that is siring to vote? clean air and clean water. I assume we all States—saying there is nothing in The result was announced—yeas 43, all do. We all talk about it. We all say here that will hurt the environment. It nays 52, as follows: it is important. In my home State I will actually help the environment. [Rollcall Vote No. 210 Leg.] lose in excess of 9,000 people every year The Senator also said the Clean Air YEAS—43 Act is going to be damaged, when, in because of particulate matter. I will Alexander Dole McConnell not allow—I say this with all humility; fact, the underlying bill has language Allard Domenici Murkowski it is not a show of power—something to that would take the fuels system out Bennett Ensign Roberts get through this Senate that would, in from under the EPA and the Clean Air Bond Enzi Sessions Brownback Graham Shelby essence, make the air worse, the drink- Act and put it in the President’s power. Bunning Grassley So we have all of these letters. Here Smith ing water worse. I cannot let this go Burr Gregg Specter while taking dollars out of the pockets is another one from Ceres, a big com- Chambliss Hatch Stevens Cochran Hutchison pany in California that is a company Sununu of hard-working Americans, to give to Coleman Inhofe Thune whom? The biggest energy companies that needs to have refining capacity. Corker Isakson Vitter in the country. They do not touch oil. It is all cel- Cornyn Kyl Voinovich Let me read to you what some of lulosic bioethanol. They want to have Craig Lott Crapo Lugar Warner these companies made in the last cou- this capacity. DeMint Martinez ple of years: Exxon, $39 billion; Shell, So the environmentalists, many of $25 billion; BP, $22 billion; Chevron, $17 them are very much for this. It is a NAYS—52 billion; ConocoPhillips, $15.6 billion. very strong bill. It goes right back to Akaka Feingold Nelson (FL) Some of these companies earned 21 the initial argument of supply and de- Baucus Feinstein Nelson (NE) Bayh Harkin Obama percent more than the year before, and, mand. We have got some good things in Biden Inouye Pryor by the way, the year before that they this bill that are coming up. It is not Bingaman Kennedy Reed earned 40 percent more. affecting today’s supply. All of the pro- Boxer Kerry Reid Brown Klobuchar Let’s take a look at what some of the duction in the world is fine, but we are Rockefeller Byrd Kohl Salazar executives have earned. I would ask not going to be able to do anything Cantwell Landrieu Sanders Cardin Lautenberg how much time remains? with that production unless we are able Schumer Carper Leahy The PRESIDING OFFICER. The Sen- to refine it. That is exactly what we Snowe Casey Levin ator’s time has expired. are talking about now. Clinton Lieberman Stabenow Mrs. BOXER. Let’s not give more to I honestly believe every argument Collins Lincoln Tester these people who are gouging us at the the Senator from California has put up Conrad McCaskill Webb Dodd Menendez Whitehouse pump. Vote no on this amendment. we have responded to over and over and Dorgan Mikulski Wyden The PRESIDING OFFICER. The Sen- over again. She keeps coming back Durbin Murray ator from Oklahoma is recognized. with the same argument. NOT VOTING—4 Mr. INHOFE. Mr. President, I under- I believe anyone who votes against stand that we have 3 minutes remain- the Inhofe amendment to the Energy Coburn Johnson Hagel McCain ing to close debate on my amendment. bill should forfeit their right to com- I have a hard time keeping a straight plain about the dependency on foreign The amendment (No. 1505) was re- face when the Senator from California oil between now and the next election. jected. suggests I have a socialistic amend- I will say this also. I am glad to say Mrs. BOXER. I move to reconsider ment. I would invite anyone who is en- this on the Senate floor because this the vote. tertaining any kind of joy in that way you cannot say we did not tell Mr. REID. I move to lay that motion statement to look at our record over you. This is going to be one of the on the table. the past many years. It is just humor- major issues in the upcoming 2008 elec- The motion to lay on the table was ous. tion as to whether you want to in- agreed to. We have gone through listening to crease our refining capacity to lower The PRESIDING OFFICER. The ma- the same thing over and over and over the price of gas in the United States of jority leader is recognized. again. We went through this yesterday America. This is a chance to do it. I AMENDMENT NO. 1537 TO AMENDMENT NO. 1502 for hours at a time. The Senator from urge you to support the Inhofe amend- (Purpose: To provide for a renewable California talks about subsidizing oil ment to the Energy bill. portfolio standard) companies. Again, not one cent goes to The PRESIDING OFFICER. All time Mr. REID. Mr. President, I send an any oil company. If we want to em- has expired. The question is on agree- amendment to the desk on behalf of power cities and communities to be ing to the amendment. Senator BINGAMAN.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7590 CONGRESSIONAL RECORD — SENATE June 13, 2007 The PRESIDING OFFICER. The Senator SNOWE, Senator DURBIN, Sen- wherewithal to deal with this issue in a clerk will report the amendment. ator BOXER, Senator LIEBERMAN, Sen- constructive way through the antitrust The legislative clerk read as follows: ator SCHUMER, Senator SANDERS, and laws. The Senator from Nevada [Mr. REID], for myself. Regrettably, the history of litigation Mr. BINGAMAN, proposes an amendment num- The thrust of this amendment is to in this field has allowed OPEC nations bered 1537 to amendment No. 1502. make the OPEC nations—which have to avoid antitrust liability by asserting (The amendment is printed in today’s conspired to limit production—subject the doctrine of sovereign immunity. In RECORD under ‘‘Text of Amendments.’’) to our antitrust laws. What we have, the decision of International Associa- The PRESIDING OFFICER. The Re- simply stated, are a group of oil-pro- tion of Machinists v. OPEC, the U.S. publican leader. ducing nations, that get together that District Court for the Central District AMENDMENT NO. 1538 TO AMENDMENT NO. 1537 make agreements to limit production. of California held that OPEC activity (Purpose: To provide for the establishment of Inevitably, by limiting the production was ‘‘governmental activity’’ rather a Federal clean portfolio standard) of oil, and thereby limiting supply, the than ‘‘commercial activity’’ and there- Mr. MCCONNELL. Mr. President, on price goes up. The limited supply of oil fore was not subject to the U.S. anti- behalf of Senator DOMENICI, I send a is the major contributing factor to trust laws. second-degree amendment to the desk. high gasoline prices. It is high time we On appeal, the Ninth Circuit affirmed The PRESIDING OFFICER. The acted on this matter. the district court’s dismissal, holding clerk will report the amendment. The Judiciary Committee has ap- that the ‘‘act of state’’ doctrine pre- The legislative clerk read as follows: proved this legislation on four occa- cluded the court from exercising juris- The Senator from Kentucky [Mr. MCCON- sions, most recently on May 22 of this diction in the case. The ‘‘act of state’’ NELL], for Mr. DOMENICI, for himself, Mr. year. In the 109th Congress, the legisla- doctrine precludes a federal court from CRAIG, Mr. BENNETT, Mr. CRAPO, Mr. tion was passed out of the Judiciary hearing a case that requires it to rule GRAHAM, and Ms. MURKOWSKI, proposes an Committee in which I was the chair, on the legality of the sovereign acts of amendment numbered 1538 to amendment and it was included in the Energy Pol- a foreign nation. No. 1537. icy Act of 2005, but it did not survive Well, those rulings are matters which (The amendment is printed in today’s conference. can be changed by legislation. The leg- RECORD under ‘‘Text of Amendments.’’) Senator KOHL and I and the other islation to make this change, I submit, The PRESIDING OFFICER. The Sen- sponsors intend to ask for a rollcall is fundamental and very much in our ator from New Mexico. vote, which I think a substantial num- national interest and ought to be un- Mr. BINGAMAN. Mr. President, I ask ber of Senators will vote for the dertaken. unanimous consent that Senator REID amendment. I hate to predict things in The lawsuits would have to be initi- of Nevada, Senator SALAZAR, and Sen- this body, but I think the vote will be ated, under our proposed legislation, by ator CARDIN be added as cosponsors to substantial, and I think that ought to the Department of Justice. As a result, my amendment that was recently sent carry very substantial weight in con- the Administration would provide a to the desk. ference. check on when to initiate a suit, avoid- The PRESIDING OFFICER. Without The facts on the current price of gas- ing diplomatic disputes. But it is a fact objection, it is so ordered. oline are very troublesome. The high we have deferred too long to the prac- Mr. BINGAMAN. Mr. President, I see price of oil drives up other prices. The tices of Saudi Arabia and practices of the Senator from Pennsylvania is in statistics are worth noting with par- the OPEC oil nations out of fear of ret- the Chamber. I know he wishes to ticularity. The price of crude oil ribution, and we ought not to kowtow speak on another matter. I ask him reached $65 a barrel yesterday. Ameri- to them anymore. how long he will need to speak, and cans are paying an average of $3.06 for The possibility of subjecting the maybe we could defer to him to make a gallon of gasoline. Consumers are OPEC nations to antitrust liability has whatever statement he wanted. paying more for products because long been an interest of mine. I wrote The PRESIDING OFFICER. The sen- American companies are paying more to President Clinton on April 11, 2000, ior Senator from Pennsylvania. to run their factories, which require urging the administration to file suit Mr. SPECTER. Mr. President, I in- the consumption of energy. Consumers in the Federal court under the anti- tend to speak on an amendment which are also paying more for products they trust laws in an effort to overturn the has been filed and I thought would be buy that have been shipped by train or previous decisions, which I think were offered at the present time, but Sen- truck from somewhere else. Plane wrongly decided. ator KOHL, the principal sponsor, wish- fares, bus tickets, cab fares often in- I ask unanimous consent that the es to offer it tomorrow. But I intend to clude significant fuel surcharges. text of this letter be printed in the speak on my amendment, and I would Economists have estimates that for RECORD at the conclusion of my com- like 15 minutes. every $10 increase in the price of oil, ments. Mr. BINGAMAN. Mr. President, I our economic growth falls by a half a The PRESIDING OFFICER. Without know Senator REED from Rhode Island percent. Our economy grew only by 0.6 objection, it is so ordered. also would like to speak for 15 minutes percent in the first quarter of this (See Exhibit 1.) on the bill. year—the slowest growth rate since Mr. SPECTER. Mr. President, then I Mr. REED. Yes. 2002. I believe a fair amount of that lag wrote to President Bush on April 25, Mr. BINGAMAN. Mr. President, why in economic growth can be attributed 2001, with a similar request, that litiga- don’t we have that be the order then: to the high price of oil. tion be initiated by the administration the Senator from Pennsylvania have 15 For decades, the OPEC members have to hold OPEC nations liable under the minutes on his amendment, which is conspired to manipulate oil prices antitrust laws. not pending but which he intends to through production quotas that limit Again, I ask unanimous consent that offer later, and then Senator REED on the number of barrels sold. OPEC again the text of that letter be printed in the the bill. appears to be poised to manipulate oil RECORD at the conclusion of my re- The PRESIDING OFFICER. The Sen- prices by limiting supply. marks. ator from Pennsylvania. The Secretary General of OPEC, The PRESIDING OFFICER. Without Mr. SPECTER. Mr. President, I Abdullah al-Badri, recently threatened objection, it is so ordered. thank the Senator from New Mexico. to cut investment in new oil produc- (See Exhibit 2.) AMENDMENT NO. 1519 tion in response to plans announced by Mr. SPECTER. We have the author- Mr. President, I have sought recogni- the United States and other Western ity to change the laws. We have a re- tion to speak on an amendment which countries to use more biofuels. He sponsibility to protect American con- has been filed, amendment No. 1519, warned that cutting investment in new sumers from these predatory practices, which has an impressive list of spon- production would cause oil prices to from these conspiracies in restraint of sors: Senator KOHL, Senator LEAHY, ‘‘go through the roof.’’ trade, these cartels. I urge my col- Senator GRASSLEY, Senator BIDEN, Well, we do not have to tolerate leagues to take a close look at the leg- Senator COBURN, Senator FEINGOLD, threats of that sort. We have the islation.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7591 As I noted earlier, the amendment not the nations which comprise OPEC are In addition to such domestic antitrust ac- will be formally offered tomorrow. engaging in ‘‘commercial activity’’ or ‘‘gov- tions, we believe you should give serious con- I thank the Chair, yield back the re- ernmental activity’’ when they cooperate to sideration to bringing a case against OPEC mainder of my time, and yield the sell their oil. If they are engaging in ‘‘gov- before the International Court of Justice ernmental activity,’’ then the FSIA shields (the ‘‘ICJ’’) at the Hague. You should con- floor. them from suit in U.S. courts. If, however, sider both a direct suit against the con- EXHIBIT 1 these nations are engaging in ‘‘commercial spiring nations as well as a request for an ad- U.S. SENATE, activity,’’ then they are subject to suit in visory opinion from the Court through the Washington, DC, April 11, 2000. the U.S. The California District Court held auspices of the U.N. Security Council. The President WILLIAM JEFFERSON CLINTON, that OPEC activity is ‘‘governmental activ- actions of OPEC in restraint of trade violate The White House ity.’’ We disagree. It is certainly a govern- ‘‘the general principles of law recognized by Washington, DC. mental activity for a nation to regulate the civilized nations.’’ Under Article 38 of the DEAR MR. PRESIDENT: In light of the very extraction of petroleum from its territory by Statute of the ICJ, the Court is required to serious problems caused by the recent in- ensuring compliance with zoning, environ- apply these ‘‘general principles’’ when decid- crease in oil prices, we know you will share mental and other regulatory regimes. It is ing cases before it. our view that we should explore every pos- clearly a commercial activity, however, for This would clearly be a cutting-edge law- sible alternative to stop OPEC and other oil- these nations to sit together and collude to suit, making new law at the international producing states from entering into agree- limit their oil production for the sole pur- level. But there have been exciting develop- ments to restrict oil production in order to pose of increasing prices. ments in recent years which suggest that the drive up the price of oil. The 9th Circuit affirmed the District ICJ would be willing to move in this direc- This conduct is nothing more than an old- Court’s ruling in Int. Assoc. of Machinists in tion. In a number of contexts, we have seen fashioned conspiracy in restraint of trade 1981 (649 F.2d 1354), but on the basis of an en- a greater respect for and adherence to funda- which has long been condemned under U.S. tirely different legal principle. The 9th Cir- mental international principles and norms law, and which should be condemned under cuit held that the Court could not hear this by the world community. For example, we international law. case because of the ‘‘act of state’’ doctrine, have seen the establishment of the Inter- After some considerable research, we sug- which holds that a U.S. court will not adju- national Criminal Court in 1998, the Inter- gest that serious consideration be given to dicate a politically sensitive dispute which national Criminal Tribunal for Rwanda in two potential lawsuits against OPEC and the would require the court to judge the legality 1994, and the International Criminal Tri- nations conspiring with it: of the sovereign act of a foreign state. bunal for the former Yugoslavia in 1993. Each (1) A suit in Federal district court under The 9th Circuit itself acknowledged in its of these bodies has been active, handing U.S. antitrust law. Int. Assoc. of Machinists opinion that ‘‘The down numerous indictments and convictions (2) A suit in the International Court of Jus- [act of state] doctrine does not suggest a against individuals who have violated funda- tice at the Hague based, perhaps, upon an ad- rigid rule of application,’’ but rather applica- mental principles of human rights. For ex- visory opinion under ‘‘the general principles tion of the rule will depend on the cir- ample, as of December 1, 1999 the Yugoslavia of law recognized by civilized nations,’’ cumstances of each case. The Court also tribunal alone had handed down 91 public in- noted that, ‘‘A further consideration is the which includes prohibiting oil cartels from dictments. conspiring to limit production and raise availability of internationally-accepted legal Today, adherence to international prin- prices. principles which would render the issues ap- ciples has spread from the tribunals in the (1) A suit in Federal district court under propriate for judicial disposition.’’ The Court Hague to individual nations around the U.S. antitrust law. then quotes from the Supreme Court’s opin- world. Recently, the exiled former dictator A case can be made that your Administra- ion in Banco Nacional de Cuba v. Sabbatino, of Chad, Hissene Habre, was indicted in Sen- tion can sue OPEC in Federal district court 376 U.S. 398 (1964): egal on charges of torture and barbarity under U.S. antitrust law. OPEC is clearly en- It should be apparent that the greater the stemming from his reign, where he allegedly gaging in a ‘‘conspiracy in restraint of degree of codification or consensus con- killed and tortured thousands. This case is trade’’ in violation of the Sherman Act (15 cerning a particular area of international similar to the case brought against former U.S.C. Sec. 1). The Administration has the law, the more appropriate it is for the judici- power to sue under 15 U.S.C. Sec. 4 for in- ary to render decisions regarding it, since Chilean dictator Augusto Pinochet by Spain junctive relief to prevent such collusion. the courts can then focus on the application on the basis of his alleged atrocities in Chile. In addition, the Administration should of an agreed principle to circumstances of At the request of the Spanish government, consider suing OPEC for treble damages fact rather than on the sensitive task of es- Pinochet was detained in London for months under the Clayton Act (15 U.S.C. Sec. 15a), tablishing a principle not inconsistent with until an English court determined that he since OPEC’s behavior has caused an ‘‘in- the national interest or with international was too ill to stand trial. The emerging scope of international law jury’’ to U.S. ‘‘property.’’ After all, the U.S. justice. government is a major consumer of petro- Since the 9th Circuit issued its opinion in was demonstrated in an advisory opinion leum products and must now pay higher 1981, there have been major developments in sought by the U.N. General Assembly in 1996 prices for these products. In Reiter v. international law that impact directly on to declare illegal the use or threat to use nu- Sonotone Corp, 442 U.S. 330 (1979), the Su- the subject matter at issue. As we discuss in clear weapons. Such an issue would ordi- preme Court held that the consumers who greater detail below, the 1990’s have wit- narily be thought beyond the scope of a judi- were direct purchasers of certain hearing nessed a significant increase in efforts to cial determination given the doctrines of na- aides who alleged that collusion among man- seek compliance with basic international tional sovereignty and the importance of nu- ufacturers had led to an increase in prices norms of behavior through international clear weapons to the defense of many na- had standing to sue those manufacturers courts and tribunals. In addition, there is tions. The ICJ ultimately ruled eight to under the Clayton Act since ‘‘a consumer de- strong evidence of an emerging consensus in seven, however, that the use or threat to use prived of money by reason of allegedly anti- international law that price fixing by cartels nuclear weapons ‘‘would generally be con- competitive conduct is injured in ‘property’ violates such international norms. Accord- trary to the rules of international law appli- within the meaning of [the Clayton Act].’’ ingly, a court choosing to apply the act of cable in armed conflict, and in particular the Indirect purchasers would appear to be pre- state doctrine to a dispute with OPEC today principles and rules of humanitarian law.’’ cluded from suit, even in a class action, may very well reach a different conclusion The fact that this issue was subject to a de- under Illinois Brick v. Illinois 431 U.S. 720 than the 9th Circuit reached almost twenty cision by the ICJ, shows the rapidly expand- (1977), but this would not bar the United years ago. ing horizons of international law. States Government, as a direct purchaser, You should also examine whether the anti- While these emerging norms of inter- from having the requisite standing. competitive conduct of the international oil national behavior have tended to focus more One potential obstacle to such a suit is cartel is being effectuated by private compa- on human rights than on economic prin- whether the Foreign Sovereign Immunities nies who are subject to the enforcement of ciples, there is one economic issue on which Act (‘‘FSIA’’) provides OPEC, a group of sov- U.S. antitrust laws (for example, former an international consensus has emerged in ereign foreign nations, with immunity from state oil companies that have now been recent years—the illegitimacy of price fixing suit in U.S. courts. To date, there has been a privatized) rather than sovereign foreign by cartels. For example, on April 27, 1998, the ruling on this issue in only one case. In Inter- states. If such private oil companies are de- Organization for Economic Cooperation and national Association of Machinists v. OPEC, 477 termined to in fact be participating in the Development issued an official ‘‘Rec- F. Supp. 553 (1979), the District Court for the anticompetitive conduct of the oil cartel, ommendation’’ that all twenty-nine member Central District of California held that the then we would urge that these companies be nations ‘‘ensure that their competition laws nations which comprise OPEC were immune named as defendants in an antitrust lawsuit effectively halt and deter hard core cartels.’’ from suit in the United States under the in addition to the OPEC members. The recommendation defines ‘‘hard core car- FSIA. We believe that this opinion was (2) A suit in the International Court of Jus- tels’’ as those which, among other things, fix wrongly decided and that other district tice at the Hague based upon ‘‘the general prices or establish output restriction quotas. courts, including the D.C. District, can and principles of law recognized by civilized na- The Recommendation further instructs should revisit the issue. tions,’’ which includes prohibiting oil cartels member countries ‘‘to cooperate with each This decision in Int. Assoc. of Machinists from conspiring to limit production and other in enforcing their laws against such turned on the technical issue of whether or raise prices. cartels.’’

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7592 CONGRESSIONAL RECORD — SENATE June 13, 2007 On October 9, 1998, eleven Western Hemi- to sue those manufacturers under the Clay- state doctrine to a dispute with OPEC today sphere countries held the first ‘‘Antitrust ton Act since ‘‘a consumer deprived of may very well reach a different conclusion Summit of the Americas’’ in Panama City, money by reason of allegedly anticompeti- than the 9th Circuit reached almost twenty Panama. At the close of the summit, all tive conduct is injured in ‘property’ within years ago. eleven participants issued a joint commu- the meaning of [the Clayton Act].’’ (2) A suit in the International Court of Jus- nique in which they express their intention One issue that would be raised by such a tice at the Hague based upon ‘‘the general ‘‘to affirm their commitment to effective en- suit is whether the Foreign Sovereign Immu- principles of law recognized by civilized na- forcement of sound competition laws, par- nities Act (‘‘FSIA’’) provides OPEC, a group tions.’’ of sovereign foreign nations, with immunity ticularly in combating illegal price-fixing, In addition to such domestic antitrust ac- bid-rigging, and market allocation.’’ The from suit in U.S. courts. To date, only one Federal court, the District Court for the tions, we believe you should give serious con- communique further expresses the intention sideration to bringing case against OPEC be- of these countries to ‘‘cooperate with one an- Central District of California, has reviewed this issue. In International Association of Ma- fore the International Court of Justice (the other . . . to maximize the efficacy and effi- ‘‘ICJ’’) at the Hague. You should consider ciency of the enforcement of each country’s chinists v. OPEC, 477 F. Supp 553 (1979), the Court held that the nations which comprise both a direct suit against the conspiring na- competition laws.’’ One of the countries par- tions as well as a request for an advisory ticipating in this communique, Venezuela, is OPEC were immune from suit in the United States under the FSIA. We believe that this opinion from the Court through the auspices a member of OPEC. of the U.N. Security Council. The actions of The behavior of OPEC and other oil-pro- opinion was wrongly decided and that other OPEC in restraint of trade violate ‘‘the gen- ducing nations in restraint of trade violates district courts, including the D.C. District, eral principles of law recognized by civilized U.S. antitrust law and basic international can and should revisit the issue. nations.’’ Under Article 38 of the Statute of norms, and it is injuring the United States This decision in Int. Assoc. of Machinists the ICJ, the Court is required to apply these and its citizens in a very real way. Consider- turned on the technical issue of whether or ‘‘general principles’’ when deciding cases be- ation of such legal action could provide an not the nations which comprise OPEC are fore it. inducement to OPEC and other oil-producing engaging in ‘‘commercial activity’’ or ‘‘gov- countries to raise production to head off ernmental activity’’ when they cooperate to This would clearly be a cutting-edge law- such litigation. sell their oil. If they are engaging in ‘‘gov- suit, making new law at the international We hope that you will seriously consider ernmental activity,’’ then the FSIA shields level. But there have been exciting develop- judicial action to put an end to such behav- them from suit in U.S. courts. If, however, ments in recent years which suggest that the ior. these nations are engaging in ‘‘commercial ICJ would be willing to move in this direc- ARLEN SPECTER. activity,’’ then they are subject to suit in tion. In a number of contexts, we have seen HERB KOHL. the U.S. The California District Court held a greater respect for and adherence to funda- CHARLES SCHUMER. that OPEC activity is ‘‘governmental activ- mental international principles and norms MIKE DEWINE. ity.’’ We disagree. It is certainly a govern- by the world community. For example, we STROM THURMOND. mental activity for a nation to regulate the have seen the establishment of the Inter- JOE BIDEN. extraction of petroleum from its territory by national Criminal Court in 1998, the Inter- ensuring compliance with zoning, environ- national Criminal Tribunal for Rwanda in EXHIBIT 2 mental and other regulatory regimes. It is 1994, and the International Criminal Tri- U.S. SENATE, clearly a commercial activity, however, for bunal for the former Yugoslavia in 1993. Each Washington, DC, April 25, 2001. these nations to sit together and collude to of these bodies has been active, handing President GEORGE WALKER BUSH, limit their oil production for the sole pur- down numerous indictments and convictions The White House, pose of increasing prices. against individuals who have violated funda- Washington, DC. The 9th Circuit affirmed the District mental principles of human rights. DEAR MR. PRESIDENT: In light of the en- Court’s ruling in Int. Assoc. of Machinists in Today, adherence to international prin- ergy crisis and the high prices of OPEC oil, 1981 (649 F.2d 1354), but on the basis of an en- ciples has spread from the tribunals in the we know you will share our view that we tirely different legal principle. The 9th Cir- Hague to individual nations around the must explore every possible alternative to cuit held that the Court could not hear this world. The exiled former dictator of Chad, stop OPEC and other oil-producing states case because of the ‘‘act of state’’ doctrine, Hissene Habre, was indicted in Senegal on from entering into agreements to restrict oil which holds that a U.S. court will not adju- charges of torture and barbarity stemming production in order to drive up the price of dicate a politically sensitive dispute which from his reign, where he allegedly killed and oil. would require the court to judge the legality tortured thousands. This case is similar to This conduct is nothing more than an old- of the sovereign act of a foreign state. the case brought against former Chilean dic- fashioned conspiracy in restraint of trade The 9th Circuit itself acknowledged in its tator Augusto Pinochet by Spain on the which has long been condemned under U.S. Int. Assoc. of Machinists opinion that ‘‘The basis of his alleged atrocities in Chile. At the law, and which should be condemned under [act of state] doctrine does not suggest a request of the Spanish government, Pinochet international law. rigid rule of application,’’ but rather applica- was detained in London for months until an After some research, we suggest that seri- tion of the rule will depend on the cir- English court determined that he was too ill ous consideration be given to two potential cumstances of each case. The Court also to stand trial. lawsuits against OPEC and the nations con- noted that, ‘‘A further consideration is the spiring with it: availability of internationally-accepted legal While these emerging norms of inter- (1) A suit in Federal district court under principles which would render the issues ap- national behavior have tended to focus more U.S. antitrust law. propriate for judicial disposition.’’ The Court on human rights than on economic prin- (2) A suit in the International Court of Jus- then quotes from the Supreme Court’s opin- ciples, there is one economic issue on which tice at the Hague based upon ‘‘the general ion in Banco National de Cuba v. Sabbatino, an international consensus has emerged in principles of law recognized by civilized na- 376 U.S. 398 (1964): recent years—the illegitimacy of price fixing tions.’’ It should be apparent that the greater the by cartels. For example, on April 27, 1998, the (1) A suit in Federal district court under degree of codification or consensus con- Organization for Economic Cooperation and U.S. antitrust law. cerning a particular area of international Development issued an official ‘‘Rec- A strong case can be made that your Ad- law, the more appropriate it is for the judici- ommendation’’ that all twenty-nine member ministration can sue OPEC in Federal dis- ary to render decisions regarding it, since nations ‘‘ensure that their competition laws trict court under U.S. antitrust law. OPEC is the courts can then focus on the application effectively halt and deter hard core cartels.’’ clearly engaging in a ‘‘conspiracy in re- of an agreed principle to circumstances of The recommendation defines ‘‘hard core car- straint of trade’’ in violation of the Sherman fact rather than on the sensitive task of es- tels’’ as those which, among other things, fix Act (15 U.S.C. Sec. 1). The Administration tablishing a principle not inconsistent with prices or establish output restriction quotas. has the power to sue under 15 U.S.C. Sec. 4 the national interest or with international The Recommendation further instructs for injunctive relief to prevent such collu- justice. member countries ‘‘to cooperate with each sion. Since the 9th Circuit issued its opinion in other in enforcing their laws against such In addition, the Administration has the 1981, there have been major developments in cartels.’’ power to sue OPEC for treble damages under international law that impact directly on On October 9, 1998, eleven Western Hemi- the Clayton Act (15 U.S.C. Sec. 15a), since the subject matter at issue. As we discuss in sphere countries held the first ‘‘Antitrust OPEC’s behavior has caused an ‘‘injury’’ to greater detail below, the 1990’s have wit- Summit of the Americas’’ in Panama City, U.S. ‘‘property.’’ After all, the U.S. govern- nessed a significant increase in efforts to Panama. At the close of the summit, all ment is a consumer of petroleum products seek compliance with basic international eleven participants issued a joint commu- and must now pay higher prices for these norms of behavior through international nique in which they express their intention products. In Reiter v. Sonotone Corp, 442 U.S. courts and tribunals. In addition, there is ‘‘to affirm their commitment to effective en- 330 (1979), the Supreme Court held that the strong evidence of an emerging consensus in forcement of sound competition laws, par- consumers of certain hearing aides who al- international law that price fixing by cartels ticularly in combating illegal price-fixing, leged that collusion among manufacturers violates such international norms. Accord- bid-rigging, and market allocation.’’ The had led to an increase in prices had standing ingly, a court choosing to apply the act of communique further expresses the intention

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7593 of these countries to ‘‘cooperate with one an- drill or mine our way to energy inde- standards for cars and light trucks to other . . . to maximize the efficacy and effi- pendence. Increasing the importation achieve a standard of 35 miles per gal- ciency of the enforcement of each country’s of foreign oil and natural gas is not the lon by the year 2020. By 2020, the bill competition laws.’’ would reduce our Nation’s oil depend- The behavior of OPEC and other oil-pro- answer. Developing more nuclear ducing nations in restraint of trade violates power, given its price, legacy, cost, and ence by approximately 1.3 million bar- U.S. antitrust law and basic international safety threats, remains very problem- rels per day, and in that year alone will norms, and it is injuring the United States atic. Investing in energy efficiency and save consumers $26 billion, and global and its citizens in a very real way. renewable energy is a win-win situa- warming emissions will be reduced by We hope that you will seriously consider tion. These investments offer short- over 200 million metric tons. These sav- judicial action to put an end to such behav- term and long-term solutions to ings will continue to increase each ior. strengthen our national security by re- year, year after year. ARLEN SPECTER. ducing our energy consumption and This is the best investment we can CHARLES SCHUMER. making us less reliant on oil from un- have, I believe, in both national secu- HERB KOHL. rity and improved environmental qual- STROM THURMOND. stable regions of the world. It enhances MIKE DEWINE. our economic competitiveness by cre- ity, not just for us but for the world. ating American jobs in this new green Strong mileage standards will also The PRESIDING OFFICER (Mr. make us more competitive. According MENENDEZ). The Senator from Rhode economy, and it will protect our envi- ronment by reducing our carbon foot- to the University of Michigan Trans- Island. portation Research Institute, U.S. Mr. REED. Mr. President, energy is print. automakers could increase revenues by the lifeblood of our economy. It is fun- Sixty percent of the oil consumed by Americans comes from abroad. While $2 billion and save between 15,000 and damental to powering our homes, busi- 35,000 jobs for autoworkers if we im- nesses, manufacturing, and the trans- Canada and Mexico are our top sup- pliers, OPEC nations hold the cards in prove gas mileage. Higher fuel effi- portation of goods and services that ciency standards will help U.S. auto- are vital to America and the world a global oil market, and a portion of the money we spend on oil undoubtedly mobile manufacturers to better com- economy. But the fossil fuels our coun- pete in the global marketplaces. The try currently relies on are finds its way into the hands of unstable and unfriendly regimes. Two-thirds of pricetag of our oil dependence is also unsustainable. Our Nation’s addiction not sustainable. According to a Depart- to oil is threatening our national secu- the global oil reserves are in the Mid- dle East, and more than 75 percent of ment of Defense report: rity and dramatically changing the cli- The United States bears many costs associ- mate in which we live. global oil production is already in the hands of state-controlled oil compa- ated with the stability of the global oil mar- Setting America on a course of great- ket and infrastructure. The cost— nies. With growing global demand and er energy self-reliance is one of the According to this report— most significant foreign policy, eco- limited remaining oil supply, many countries, including our allies and of securing Persian Gulf sources alone comes nomic, and environmental challenges to $44.4 billion annually for the United we face as a Nation. trading partners, will compete with us States. for finite oil supplies as their and our Senators BINGAMAN, DOMENICI, We are literally policing the world own economy rely more heavily on im- INOUYE, and STEVENS have put a great oil market for the benefit of the world ports. This will inevitably stress the deal of effort in developing this Energy economy, with great cost in terms of bill, and it is an excellent first step. delicate balance that exists among na- dollars but also in terms of the huge The bill will improve our Nation’s en- tional interests in the world, and it pressure on our military forces and ergy efficiency, protect consumers gives oil-rich nations disproportionate their families. from price gouging, increase vehicle leverage in the international arena. Al- We lose $25 billion from our economy economy standards, and decrease our Qaida and other terrorist networks every month, and oil imports now ac- reliance on oil, especially from unsta- have openly called for and carried out count for nearly a third of the national ble regions of the world. attacks on oil infrastructure because trade deficit because of our dependence President Bush admitted we are ad- they know oil is the economic lifeline on oil. The economy is exposed to oil dicted to oil. But for the last 6 years, of industrial economies, especially the price shocks and supply disruptions, neither he nor the Congress was willing United States. and families are feeling the pinch of oil to take real action to change that fact. Today, we have an opportunity to prices. High energy prices reduce con- I commend Senator HARRY REID for shift the balance of power around the sumer spending power and affect busi- bringing this legislation to the floor. globe that is dictated by oil. Our first nesses’ bottom lines. For the first time in 30 years, the step is to strengthen our national secu- Millions of petrodollars are being ex- Senate is now poised to pass legislation rity by increasing CAFE standards. ported out of U.S. cities and counties to increase vehicle fuel standards. I Raising fuel economy standards is an to pay for energy with a real effect on commend particularly Senators FEIN- essential insurance policy against the local economic vitality. In Rhode Is- STEIN and DURBIN and SNOWE for their risk of oil dependence and global land, my home State, gas prices have work on this issue. I was glad to be an warming, which pose vital threats to increased by $1.50 per gallon, an in- original cosponsor of the ten-in-ten our national security. Fuel economy crease of 99 percent, since 2001. House- bill, which is the basis of the bipartisan standards have proven effective at re- holds in Rhode Island are paying $1,430 compromise in the legislation we are ducing our demand for oil, but they more per year for gasoline than in 2001. considering today. have been stagnant for more than a So for the State economy, this means The debate about fuel economy decade, despite advances in vehicle that families, businesses, and farmers standards should be over. We have the technology. The fact that our indus- in Rhode Island will spend $52.4 million technology to get well beyond 35 miles trial competitors are increasing mile- more on gasoline in June 2007 than per gallon, and the American public age standards underscores how we have they spent in January 2001, and $600 supports an increase in fuel efficiency been lagging behind the world economy million more will be spent on gasoline standards. The time for action is long in terms of technology, in terms of ap- this year than was spent in 2001, if overdue, and I hope my colleagues will plying that technology through in- prices remain at current levels. Rhode resist efforts to weaken these stand- creasing the standards for automobiles Island residents, farmers, and busi- ards. in our country. Achieving a 35-mile- nesses are on track to pay $1.2 billion We have an opportunity to create a per-gallon fuel economy over the next for gasoline this year. That is an ex- new energy future for the country. decade, the equivalent of the 4-percent- traordinary drain on the economy of That future would strengthen our na- a-year improvement called for by my State and on States throughout tional security by making us more self- President Bush, is achievable. Begin- this great Nation. reliant and slow the impacts of global ning in 2011, this bill requires the Na- If we have a policy that increases warming on our climate by investing in tional Highway Traffic Safety Admin- CAFE standards and energy efficiency energy efficiency, renewable energy, istration to annually increase the na- and makes sensible investments in re- and biofuels. I do not believe we can tionwide average fleet fuel economy newable fuels, we will have more funds

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7594 CONGRESSIONAL RECORD — SENATE June 13, 2007 to invest in education, health care, helps individual families, which is an- tional Security Task Force on Energy public works, and business develop- other win-win program we must sup- published a report recommending sev- ment. My State, like so many States, port more vigorously. eral measures to improve energy secu- is struggling with a budget problem, a The program weatherizes approxi- rity in the 21st century, including a na- huge State budget problem. Some of mately 100,000 homes each year. Since tional RES of 10 to 25 percent. Con- that can be attributed directly to the its inception, the program has weather- sumption of natural gas is growing at a higher cost of fuels to run schools, to ized over 5.6 million homes. Weather- faster rate than for any other primary run buses, to run the infrastructure of ization has also grown an energy effi- energy source, and it is growing in all our State. We could take that money, ciency industry for residential housing sectors of the economy. Families heat save it, and invest it in education, in that, according to the Department of their homes with natural gas, busi- schools, and not simply ship it overseas Energy, employs 8,000 people who work nesses use natural gas to produce prod- through major international oil compa- in low-income weatherization alone. ucts, natural gas vehicles are becoming nies. This has been a great success. Again, more common, and power producers Energy efficiency and renewable en- lowering the cost to families, lowering generate cleaner energy with natural ergy programs that improve tech- the national demand, and putting peo- gas. Similar to oil, demand is growing nologies for our homes, our businesses, ple to work is a good formula for our faster than available supplies can be and our vehicles must be the ‘‘first economy today. delivered, and the tightening in supply fuel’’ in the race for secure, affordable, Unfortunately, the Department of and demand is resulting in dramatic and clean energy. Energy efficiency is Energy’s fiscal year 2007 spending plan price volatility. One way to increase the Nation’s greatest energy resource. cut funding to the weatherization pro- the natural gas supply in the United We now save more energy each year gram, and the administration, unfortu- States is through liquefied natural gas, from energy efficiency than we get nately, has a situation in which effi- known as LNG. Again, however, we from any single energy source, includ- ciency funding has fallen alarmingly would do well to learn from our lessons ing oil, natural gas, coal, and nuclear since 2002. Adjusting for inflation, with oil. One-third of the world’s prov- power. We need to use energy in a way funding for energy efficiency has been en reserves of natural gas are in the that saves money. It is much cheaper cut by one-third. We have to do better. Middle East, nearly two-fifths are in to conserve energy and increase effi- In the face of soaring prices, in the face Russia and its former satellites, and ciency than to build further energy in- of international threats posed by oil Nigeria and Algeria also have signifi- frastructure in the country. powers, we are cutting programs that cant reserves. The Senate bill contains important are efficient, effective, and help fami- Political stability and terrorism are provisions to support energy efficiency. lies, and that is not only wrong, but it very real threats to these countries First, it sets new energy benchmarks is terribly wrongheaded. being a reliable source for natural gas. for appliances, including residential A strong renewable electricity stand- Russia is trying to create an OPEC- boilers, dishwashers, clothes washers, ard is also needed to diversify our fuel style cartel for natural gas, which refrigerators, dehumidifiers, and elec- supply, clean our air, and better pro- could manipulate natural gas prices tric motors. These seem like very mun- tect our consumers from electricity and supply, and that would be a very dane, trivial items, but if we can make price shocks. I am glad to join Senator unfortunate development. even small increases in their effi- BINGAMAN in supporting an amendment For over 30 years, through four dif- ciency, it has a huge macroeconomic to the bill to require a 15-percent re- ferent administrations, Americans effect on our society in terms of de- newable electricity standard by 2020. have been promised that our Govern- mand for energy, and this legislation This amendment will promote domesti- ment would end the national security will help us do that and point us in cally produced clean energy, reduce threat created by our dependence on that direction. According to the Amer- U.S. greenhouse gas emissions, reduce foreign oil. As a country, we need to ican Council for an Energy Efficient energy costs for American consumers move in a new direction toward a clean Economy, increasing these standards and businesses, and create American and secure energy future. This effort will give consumers more than $12 bil- jobs. must include greater investment in en- lion in benefits, save more than 50 bil- According to the Union of Concerned ergy efficiency, a strong renewable lion kilowatt-hours per year in elec- Scientists, a 15-percent RES would electricity standard, and increased ve- tricity, or enough to power 4.8 million save the residential, commercial, and hicle fuel economy standards. Also, as typical American households. The bill industrial sectors $16.3 billion in elec- we dramatically increase biofuel pro- also strengthens energy requirements tricity and natural gas costs. These duction, we must ensure that it does for the Federal Government. Today, savings are particularly critical for en- not cause harm to the environment and the Federal Government spends more ergy-intensive industries such as man- public health. than $14 billion a year on energy. In- ufacturing. The RES will also create Energy security starts with using the creasing efficiency will save energy jobs in manufacturing. A recent study fuels we have more efficiently. Smart and taxpayer dollars. That is some- by the Apollo Alliance and the Urban energy use is a resource not vulnerable thing we have to begin ourselves, lead- Habitat found that renewable elec- to terrorism or world politics, and I ing by example at the Federal level. tricity creates American manufac- think this legislation is a step forward The bill also increases the authoriza- turing, construction, and maintenance for smart energy use. I commend tion level for the Weatherization As- jobs. For every megawatt of solar pho- Chairman BINGAMAN for his leadership. sistance Program and the State Energy tovoltaic electricity generated, about I yield the floor. Program. The State Energy Program 22 jobs are created, which is their pro- The PRESIDING OFFICER. The Sen- improves the energy efficiency of jection. Geothermal energy creates 10.5 ator from North Dakota. schools, hospitals, small businesses, jobs per megawatt, and wind energy IMMIGRATION farms, and industries to make our creates 6.4 jobs per megawatt. Amer- Mr. DORGAN. Mr. President, I wish economy more efficient. ican energy-intensive industries that to say a word this morning about a col- The Weatherization Assistance Pro- are saving $5 billion through 2023 will umn that was printed in the Wash- gram helps low-income families, the el- be more competitive in the global mar- ington Post this morning on the op-ed derly, and the disabled by improving ket. Using clean, domestically pro- page that was taking the majority energy efficiency of low-income hous- duced power will also help stabilize leader of the Senate to task, and doing ing. Weatherization can cut energy prices, allowing businesses to more ac- so, I think, unfairly and certainly inac- bills by 20 to 40 percent in each assisted curately budget for energy costs. This curately. home. This represents savings that RES, the proposal of Senator BINGA- The column criticizes the majority families can use to pay for other neces- MAN, will also lower U.S. carbon diox- leader for saying the Senate’s time was sities, while reducing the Nation’s en- ide emissions by nearly 2 million tons ‘‘too precious’’ to expend on what ergy demand by the equivalent of 15 per year by 2020. would have been unlimited debate on million barrels of oil each year. It low- Finally, the RES is important to our an unlimited number of Republican ers our national demand for energy, national security. In July 2006, the Na- amendments to the immigration bill.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7595 The intent of this column in the news- have given us better cupholders. They I did not support that guest worker paper is to say that the majority leader have given us better music systems. program. I believe at least we should was responsible for failing to allow They have given us keyless entry. But sunset it after 5 years to evaluate the consideration of the immigration bill. they haven’t in 25 years given us great- consequences, what impact it has had I don’t know what Mr. Will, who er efficiency, and they should. That is on our country. Has it had an impact of wrote this column, was watching last in the bill. downward pressure on wages, which I week. I know Paris Hilton was being We also increase the supply of alter- think it will have, which I don’t sup- taken back and forth between her native energy with renewable fuels port? Has it had an impact of bringing house and the sheriff’s office and court called the biofuels, ethanol, corn-based in a lot of immigrants who will not and jail, apparently, and the country ethanol; yes, cellulosic ethanol, yes. If leave afterward and, therefore, be here must have been riveted on that story. Mr. Will and others think that is irrel- without legal authorization? If so, But C–SPAN would have availed a col- evant, they miss the point. This coun- should we consider that issue and how umnist of a pretty good look at what try doesn’t have a choice. We must find to deal with it? the Senate was doing, and not just for a route to be less dependent on foreign I think these are very complicated last week but for 2 weeks the Senate sources of oil. issues, and the guest worker program dealt with the subject of immigration. One approach, in my judgment, is to should be sunsetted after 5 years. My I happen to come to a different con- make the vehicles more efficient. An- amendment won by one vote, and then clusion on that subject than the major- other approach is to produce renewable it was as if the sky was falling. This is ity leader. I know who supports that fuels. I was the author of the only going to kill the bill, they say. I don’t legislation, and he has supported that standard that exists for renewable agree with that at all. I just don’t legislation. I watched the last day of fuels, a 7.5-billion-gallon-a-year stand- agree. consideration when the majority leader ard. We did that 2 years ago. I think we As I have indicated many times, they came to the floor and offered a pro- are at 7.5 billion gallons already. We brought that out here suggesting that posal where each side would get four were hoping to get there by 2012. Now anything that was done that would amendments. That was objected to. He we have a bill that will take us to 36 change it would kill the bill. Again, it then proposed that each side would get billion gallons of renewable fuels. As a is the argument we hear all the time: three amendments. That was objected measurement, we use 145 billion gal- the lose thread on the cheap sweater; to. Each side would get two amend- lons of fuel a year. We want to go to 36 pull the thread, the arms fall off. ments. That was objected to. billion gallons of renewable fuels that I come back to this point that I I don’t have the foggiest idea why we can grow in our farm fields, among think the column today is unfair to the Mr. Will would write a column sug- other things. majority leader. It unfairly suggests gesting somehow the majority leader It is easy to write a column, I guess. that he is the responsible party for not was responsible for that not going for- If the ink is inexpensive, you can say moving forward on immigration. We ward after 2 full weeks of debate and anything you want. This is not an ac- spent 2 full weeks on immigration. It being blocked in every circumstance of curate reflection of two things. No. 1, wasn’t incomplete because of anything having additional amendments consid- it is not an accurate reflection of the the majority leader did. He is the one ered. immigration bill, and it is not an accu- who brought it to the floor in the first But what brought me to the Senate rate reflection, in my judgment, of the place. Second, it is unfortunate—certainly floor is not my support of consider- merits of biofuels to extend America’s well within the columnist’s right, but ation or further consideration of the energy supply. unfortunate—to suggest that somehow immigration bill, but the charge that While I am up, I want to make one renewable fuels cannot play a signifi- the majority leader was somehow re- more point. There are others who cant part in this country’s energy fu- sponsible for scuttling it. That is not talked about the amendment I offered ture. That is a significant part of this the case, No. 1. And, No. 2, Mr. Will to the immigration bill suggesting that bill. Senator BINGAMAN, Senator says in his column that, in fact, it was somehow it would have been respon- DOMENICI, myself, and many others taken off the floor in order to bring up sible for killing the bill. I want to de- have worked on renewable fuels for a legislation that would quintuple the scribe it very briefly. long while. We set a standard that I mandated use of corn-based ethanol, The immigration bill was put to- think is going to be very exciting for apparently upset about the fact that gether in a room by a group of people this country to meet, and I think it who said: Here is what we think we we have an energy bill on the floor at will reduce our dependence on foreign should do to deal with immigration. this point that would dramatically in- sources of oil, will make us much less The proposal was put together in a crease the use of biofuels, corn-based dependent than we are now, and I think room by some 14 Senators, which ethanol and also cellulosic and other it will advance this country’s security meant that 86 others were not in- approaches because we believe we need and energy interests. to find somehow, some way, some volved. So the product was brought to I am pleased to be a part of that ef- point, someday to become less depend- the floor of the Senate, and we were fort and support it and felt especially ent on foreign sources of oil. told: If you have a different idea, the that I ought to say a word in response Over 60 percent of the oil we use in group of 14 are going to oppose it. That to this column that I think unfairly this country we obtain from troubled group of 14, or whatever it was, cre- treats the issue of biofuels. parts of the world overseas—60 percent ating a grand compromise, they had a Mr. President, I yield the floor. of it and it is growing: the Saudis, the responsibility to oppose anything that The PRESIDING OFFICER. The Sen- Kuwaitis, Venezuela, Iraq, and the list the rest of the 86 Members of the Sen- ator from North Dakota. goes on. If tomorrow, God forbid, some- ate believed could add to or improve Mr. CONRAD. I thank the Chair. how that source of oil would be shut off the bill. (The remarks of Mr. CONRAD per- to our economy, this economy, this Among other things, the bill provided taining to the introduction of S. 1605 American economy would be flat on its a temporary worker provision which are printed in today’s RECORD under back. We need to become less depend- said there are millions of people out- ‘‘Statements on Introduced Bills and ent on foreign sources of oil. We use 70 side this country—400,000 a year origi- Joint Resolutions.’’) percent of the oil we bring into this nally, 2 years on, 1 year back to their Mr. CONRAD. Mr. President, I rise country in our vehicles. We run them home country, 2 years back, 1 year today in support of bold action on en- through the carburetors and fuel back to their home country, 2 years ergy policy for this country. I am injectors of our vehicles. back a third time. My colleague from pleased and indebted to the chairman We are doing a lot with this legisla- New Mexico reduced that to 200,000 a of the Energy Committee for his lead- tion. We haven’t had an increase in the year. But it was ultimately the same ership. I think all of us know our coun- efficiency standards for vehicles for 25 circumstance. It would have been a try faces serious energy challenges. years, and the auto companies, I know, massive number of new people who The most pressing is the fact that our object to that. They objected to seat- don’t now live here who would have Nation is far too dependent on foreign belts. They objected to airbags. They come in and taken jobs in this country. oil.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7596 CONGRESSIONAL RECORD — SENATE June 13, 2007 For example, we currently import nologies, promote responsible develop- We have the greatest wind energy po- roughly 60 percent of the oil we con- ment of domestic fossil fuel resources, tential in North Dakota of any State in sume. You can see that in 2006, 60 per- and facilitate expansion and upgrades the Nation. I might add it is not be- cent of our oil came from imports; only to our Nation’s electricity grid. cause of our congressional delegation. 40 percent was domestic. Not only does That is also one of the challenges fac- No, this is wind generated by a higher this make us increasingly dependent on ing us; we have gridlock on the energy power. the most unstable parts of the world, grid. When we produce additional en- I am glad I have been able to amuse but it is also leading to a financial ergy in North Dakota, we can’t move it the Chair. hemorrhage. It is leading us to spend to the Chicago market because the ca- North Dakota has those constant pre- hundreds of billions of dollars abroad pacity of the grid is full—in Minnesota, vailing winds. Already, we have seen that could otherwise be deployed here in Wisconsin. So when we put on new hundreds of millions of dollars invested at home. capacity in North Dakota through in wind energy, but much more could Imported petroleum accounted for wind power, for example, where we be done. And, of course, we have ex- $272 billion of the U.S. trade deficit have extraordinary potential, we can’t traordinary deposits of coal as well. By over the last year, equal to 32 percent move it to the Chicago market where it plugging into these sources of energy of our total trade deficit—$272 billion is needed because the grid itself is grid- to fuel our transportation sector, we that we spend in other countries that locked. can dramatically reduce our depend- could have been spent here at home. I am pleased the bill before us con- ence on foreign oil. Imagine the difference in this coun- tains many of the provisions or similar This bill also establishes long over- try’s economy if we were spending $270 provisions to what was in the BOLD due efficiency standards for consumer billion in America securing energy Act I introduced last year. The renew- appliances and industrial products, and here instead of shipping it to Saudi able fuels standard is an important promotes advanced lighting tech- Arabia, Kuwait, Venezuela, Nigeria, step. My BOLD Act required 30 billion nologies that will cut down on a major and all of the other countries from gallons of renewable fuel use by 2025. source of our electricity load. whom we buy foreign oil. This bill requires 36 billion gallons by Lastly, I am encouraged by the We know much of this oil is coming 2022. Renewable fuels have tremendous strong provisions in this bill to re- from the most unstable parts of the potential to reduce our imports. By re- search, develop, and demonstrate our world. That puts us at risk, not only at lying more on domestic crops to capacity to capture and store carbon economic risk but at national security produce ethanol and biodiesel, we can dioxide. The largest carbon sequestra- risk. We must also recognize that other reduce fuel prices, support economic tion project in the world is going on in countries, especially in the developing development in rural areas, and im- North Dakota, where the coal gasifi- world, are going to consume growing prove our energy security. cation plant that is run by Basin Elec- amounts of energy as well. In fact, the This energy bill also takes steps to tric—we call it the Dakota gasification Energy Information Administration develop an infrastructure of pipelines, plant—is shipping about half of the projects world consumption of energy rail lines, and trucks able to deliver in- carbon dioxide it produces to Canada to will increase 57 percent from 2004 to creasing amounts of renewable fuels to repressure the oil fields there. This is 2030. market. These steps will allow us to the largest carbon sequestration This chart shows it well. This is the substitute homegrown fuels for foreign project in the world. We are proud of it. current consumption level. This is oil, dramatically reducing our depend- We are demonstrating that this can be what they project by 2030—a 57-percent ence on imported oil. done, and that is a winner on every increase. This growth in demand for Let me say that other countries have count. It reduces carbon dioxide in the energy will mean higher prices for en- done this. Brazil is a perfect example. atmosphere and it repressures oil fields ergy, increased price volatility in the You can see, in the green bars, that in in Canada to get more production so we markets for oil, natural gas, uranium, 1973 we were 35 percent dependent on are less reliant on more unstable and coal as transportation and refining foreign oil. Today, we are 60 percent. sources. This is crucial work if we are networks are pushed to capacity. Un- Look at Brazil. Brazil, in 1973, was 80 to find the best response to global cli- less we change course, we will become percent dependent on foreign oil. They mate change. even more dependent on foreign energy have reduced that last year to 5 per- I look forward to taking up work in sources. In fact, we are told now that cent—a dramatic change. How have the Finance Committee next week to while we are 60 percent dependent, we they done it? They have done it by pro- craft bold and thoughtful tax provi- are headed for 75 percent dependence if moting ethanol and biodiesel and by sions to complement and expand upon we fail to act. In short, our addiction promoting flexible fuel vehicles. That the worthy objectives that are already to foreign oil threatens our economic is a program for success. in this bill. This bill takes important future and our national security. We Experts tell us the single most im- steps to set us on a path toward energy need to take significant strides now to portant thing we can do to reduce our independence. Let me say it will be develop other sources of energy, ones reliance on foreign oil is to improve many years before we reach that objec- we can rely on to be there in the fu- the efficiency of our cars and trucks. If tive, but we must act boldly now to ture. our cars averaged 40 miles a gallon, we take these initial steps. I have said many times to my col- could save 2 to 3 million barrels of oil I wish to especially commend and leagues, instead of continuing our de- a day. In the short term, we clearly thank the chairman of the Energy pendence on the Middle East, we need need to increase fuel efficiency. In the Committee, Senator BINGAMAN, who to look to the Midwest for increased longer term, we need to develop alter- has labored so hard and so long to energy supplies, because it is in the native fuel technologies, such as plug- produce this legislation. Senator Midwest where we grow the feedstocks in hybrid and electric drive vehicles. BINGAMAN has taken on some of the for ethanol and biodiesel, things that This bill helps advance a long-term so- toughest areas of energy policy. These reduce our dependence on foreign oil. lution to the problem with research are areas of real controversy, and he Fortunately, the United States has and development and demonstration has taken them on with real leader- the domestic resources and the inge- programs for electric drive transpor- ship. We are proud of him. nuity to reduce our dependence on for- tation technology. The bill also in- Senator BINGAMAN, I thank you for eign oil and meet our energy chal- cludes loan guarantees for facilities for the legislation you have brought to the lenges. That is why I introduced the the manufacture of parts for fuel-effi- floor and for the effort you and your BOLD Act last year, Breaking Our cient vehicles, including hybrid and ad- staff have put into this endeavor. It is Long-term Dependence. The BOLD Act vanced diesel vehicles. important for our country. I believe, would increase production of renewable We have abundant domestic sources more broadly, it is important for the energy and alternatives fuels, offer in- of electricity, from a 250-year supply of world. centives to reward fuel savings and en- coal to rapidly developing renewable I yield the floor. ergy efficiency, increase research and sources such as wind energy. Let me The PRESIDING OFFICER. The Sen- development funding for new tech- say that my State is a leader in both. ator from New Mexico.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7597 Mr. BINGAMAN. Mr. President, first, egy but an essential component of such the cost of the program to utilities let me thank my friend and colleague a strategy. would be capped by allowing utilities from North Dakota for his kind words The benefits are clear. This portfolio to make this alternative compliance and for his strong support for this leg- standard would reduce our dependence payment of 2 cents per kilowatt-hour, islation. He has been a leader on this on traditional polluting sources of which is adjusted for inflation. As long whole set of energy issues and proposed electricity. It would reduce our depend- as the difference between the cost of very strong legislation in the last Con- ence on foreign energy sources. It renewable generation and the cost of gress on this very set of issues. We are would reduce the growing pressure on other generation resources is less than hopefully moving ahead on some of the natural gas as a fuel for the generation 2 cents per kilowatt-hour, the utility policy recommendations and proposals of electricity. It would reduce the price could buy or generate renewables or he has made here in the Senate in the of natural gas. It would create new buy credits in the open market. When last year or two. I congratulate him on jobs. It would make a start on reducing it reaches or exceeds that 2-cent price, that and look forward to continuing to our greenhouse gas emissions, and it the cap would kick in. work with him. would increase our energy security and We also would create a program from We are now on what is called the re- enhance the reliability of the elec- the alternative compliance payments newable portfolio standard and the re- tricity grid. Those are some of the ben- so that, to the extent a utility chose to newable electricity standard amend- efits. go ahead and just pay the 2 cents per ment. This is an amendment I offered. Mr. President, I failed at the begin- kilowatt-hour, those funds would go Senator DOMENICI has now offered a ning of my comments to ask unani- into a State program for development second-degree amendment to it, which mous consent that Senator DURBIN be of renewable energy in that State. is really a substitute, which is really a added as an original cosponsor of this Congress has tried before to spur the very different piece of legislation than amendment. development of renewables. In 1978, we passed the Public Utility Regulatory the amendment I offered. The PRESIDING OFFICER. Without I thought I would take a few min- objection, it is so ordered. Policies Act. That bill required utili- ties to buy renewables if the generators utes. I know Senator DOMENICI will be Mr. BINGAMAN. This portfolio returning to the floor here in a few standard we have offered is a flexible, could meet the avoided cost of the util- ities. Cogeneration—the combined use minutes, and he will want to speak on market-driven approach to achieving of heat and industrial processes for his proposed substitute amendment. I all of the goals I have enunciated here generation of electricity—was also eli- thought I would take a few minutes and to do so at a negligible cost to con- gible. That program resulted in a huge right now to describe the amendment I sumers. The proposal would require re- growth in cogeneration. Over half of have offered on the renewable portfolio tail sellers of electricity who sell more the new generation that came on line standard. than 4 million megawatt hours per in this country during the 1980s and the In each of the last three Congresses, year to provide 15 percent of that elec- 1990s was from that resource. It did we passed a major energy bill in the tricity from renewable sources by the not, however, do much for renewable Senate. In each of those energy bills, year 2020. The requirement would be generation. These technologies have we have included a provision to require ramped up. There would be an increase remained at about 2 percent of total that a certain percentage of the elec- in the requirement each year, in 3-year electricity supply for several decades tricity sold by electric utilities increments to allow planning flexi- now. throughout the Nation come from re- bility for those utilities. We have a chart here which makes newable energy sources. That is the na- The Secretary of Energy would be re- that point. This chart depicts elec- ture of the amendment I am offering quired to develop a system of credit for tricity generation by fuel during the again today. The Senate has approved renewable generation that could be period 1970 projected through 2025 in this proposition again and again. traded or sold, again making the pro- billions of kilowatt-hours. In the 107th Congress, we included gram easier to comply with. Utilities You can see, from 1970 up to the cur- such a portfolio standard. That is the could use new or existing generation to rent time, renewables is way down to- phrase which has been used historically comply with the program or they could ward the bottom. It is the second to to describe this amendment, a portfolio comply with the program by buying the bottom line on that chart. Then it standard. It is really an electricity credits from someone who has produced stays flat going forward, unless we pass standard or electricity requirement on more renewable energy than they were this legislation. This legislation is in- utilities. But in the 107th Congress, we required to produce. New renewable tended to change these lines on this included such a portfolio standard as producers could receive the credits to chart. That is the entire purpose of the part of the Energy bill, and strong trade or to sell. legislation. votes on the floor affirmed the Senate’s Let me just summarize at this point Critics of the program claim that the determination that the standard we and interject. The way we have drafted cost of this would be too much, that proposed there should not be weakened. this, the flexibility is that an electric States are already requiring develop- In the 108th Congress, there was a utility can comply with the require- ment of renewables, and that some letter signed by 53 Senators that went ment—the requirement being to ensure areas do not have readily available re- to the chairs of the conference on the that 15 percent of the electricity they newable resources. My response is, I Energy bill. The Senate conferees went sell comes from renewable sources—in would point to a number of studies of on to approve the portfolio standard any of four ways: this proposal that have been done over and sent it on to the House as part of First, they can produce the elec- the years. our bill. tricity themselves. They could put in a In 2003, I asked the Energy Informa- In the 109th Congress, the same thing wind farm or a biomass facility or tion Administration at the Department happened. whatever and produce that energy from of Energy to look at the effect the pro- In all three cases, the House con- renewable sources themselves. posed renewable standard at that time ferees rejected the proposal that had Second, they could buy that energy would have had. They found that the been passed by the Senate. Now we from someone else who is producing standard would result in 350 billion kil- have an opportunity to renew our sup- that renewable energy. owatt-hours of renewable generation port for this proposal and to place it in Third, they could buy credits from being constructed between 2008 and a bill that hopefully can garner strong someone who has produced more re- 2025; that is generation that would not bipartisan support and finally reach newable energy than they themselves be constructed absent the passage of the President’s desk. are required to have in order to meet that provision. They found that the There are good reasons for the Sen- their requirements under the law. cost would be minimal. The report in- ate to support this proposal. A strong Fourth, there is a compliance fee dicated there would be an increase in renewable portfolio standard is an es- that they could pay the Secretary of the cost of electricity by about one- sential component of any comprehen- Energy if they are not able to do any of tenth of a cent in 2025 over projected sive national energy policy. It is not the previous three. That would be at a costs. When combined with the reduc- just an important part of such a strat- rate of 2 cents per kilowatt-hour. So tion in natural gas prices which would

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Dr. Ryan In 2005, again I asked the Energy In- this Government is going to come to a Weiser, of Lawrence Berkeley National formation Administration to update responsible position with regard to Laboratory, presented a report that the analysis, taking contemporary con- greenhouse gas emissions and there are summarized the results of 15 studies of ditions into account. That update going to be limits on carbon emissions renewable portfolio standards, much found that the portfolio standard we imposed in this country, as they have like the one I am offering. were proposing then would cause the been imposed in many industrial coun- All these studies found that a port- prices of both electricity and natural tries around the world—the sooner the folio standard would reduce natural gas gas to actually go down, and the letter better, from my perspective. But cer- prices; 12 of the 15 studies projected a that outlines those results stated: tainly that is going to happen long be- net reduction in overall energy bills for Cumulative residential expenses on elec- fore the end of the next 13 years. consumers as a result of the renewable tricity from 2005 to 2025 are $2.7 billion, that The report acknowledges these as- portfolio standard. In other words, we is 2/10th of a percent lower, while cumulative sumptions but states that different as- can save natural gas, we can reduce residential expenditures on natural gas are sumptions would result in lower costs carbon dioxide emissions significantly, reduced by $2.9 billion, or one half of 1 per- for the renewable electricity standard. cent. Cumulative expenditures for natural and we can save money both on elec- There is, of course, considerable uncer- tricity bills and on natural gas bills gas and electricity by all end use sectors tainty regarding the projected baseline taken together will decrease by $22.6, again, from making this move that this pro- one-half of 1 percent. electricity mix. Actual implementa- posal contemplates. tion of future policies to limit green- That report also indicates that gen- Many have argued that States are al- house gas emissions could lead to a eration of electricity from natural gas ready implementing renewable port- larger role for natural gas in the gen- would be 5 percent lower with the RPS folio standards so there is no need for eration mix. a Federal program. It is true States than it would be without the RPS. It This is a quote from the report we re- have taken the lead in pushing for also projected that total electricity- ceived this year. It says: more renewable generation. sector carbon-dioxide emissions would In such a scenario—— be reduced by 249 million metric tons Twenty-three States currently have That is where natural gas has a larg- relative to the reference case. in development renewable require- This year, once again, I asked the er role in the generation mix—— ments. Almost all these standards are Energy Information Administration to the projected impact of the 15 percent renew- more aggressive than the Federal able portfolio standard proposal would move standard I am proposing in the amend- analyze the proposal we now have be- toward those identified in the 2005 analysis. fore the Senate. This analysis indicates ment I have sent to the desk. New Mex- In the tax title that is being devel- that the renewable electricity standard ico requires 16.2 percent by 2020. Cali- oped by the Finance Committee to ac- or renewable portfolio standard would fornia requires 20 percent by 2017. company the bill, we are working to result in a tripling of generation from Maine requires 30 percent by 2000. Min- extend the production tax credit, to ex- biomass, a 50-percent increase in wind nesota requires 27.4 percent by 2025. tend the investment tax credits that generation, and a 500-percent increase This will spur the growth of renew- are available for renewables. We are in solar generation. The net expendi- ables in these regions. There is one also going to do something, I believe, thing, however, that a State standard tures for energy by consumers are pro- to try to encourage sequestering of car- jected to increase by three-tenths of 1 cannot do—it cannot drive a national bon emissions. market for the technologies involved percent, electricity prices are projected I don’t think anyone in this body be- here. If some States have renewable to increase by nine-tenths of 1 percent, lieves Congress will fail to act on this standards and others do not, it is im- while natural gas prices are slated to issue for the period of time that is possible for a national market to de- fall. built in for these assumptions. If we as- velop for renewable credits. The renewable electricity standard sume what we believe is going to hap- This credit trading system is the would also be expected to reduce car- pen, we are back with a projection of piece of our proposal that gives the bon dioxide emissions by 6.7 percent, or considerable consumer savings from greatest flexibility for compliance. The 222 million metric tons in 2030. the renewable electricity standard, as credit trading system also helps to re- These projections are not as opti- we found in the 2005 report that they duce the cost of compliance by allow- mistic as those we got 2 years ago in did. the 2005 analysis. There are some dif- A recent report from Wood Mac- ing credits for lower cost renewables ferent assumptions which they used kenzie, which is a noted natural gas in- from one region to be bought by utili- which explain the different conclu- dustry analytic consulting firm, con- ties in another region. sions. The first assumption was that cluded that a 15-percent renewable Some argue this is a cost shift from the reference case projects a much portfolio standard would result in a the regions without renewable re- greater expansion of coal generation savings in variable costs for electricity sources to those that have renewable than earlier projections. That was of $240 billion by 2026. resources. I would argue it is a way to partly a result of the higher natural That is far more than offsetting the spread the cost to all who are, in fact, gas price projected. Second, the study $134 billion increase in capital expendi- benefitting. If States do not have or assumes tax credits for renewables tures. The study indicates that natural choose not to develop renewable re- will, in fact, end next year, in 2008. gas prices would be from 16 to 23 per- sources, they still realize very real ben- They are scheduled to expire next cent lower in their projection by 2026 efits in lower natural gas prices, lower year. I think all or at least most Mem- as a result of enactment of this provi- SO2 allowance costs, and low-cost car- bers of the Senate believe we ought to sion. The study also projects that car- bon reductions. It is only fair they extend those tax credits. I hope we do bon emissions from the power sector share the slight increase in costs for so as part of our amending of this bill would be 10 percent lower in 2026 as a generation of electricity that, in fact, on the Senate floor this week and next result of this. created the savings. The argument that week. I know the Finance Committee, A recent study by the Union of Con- many States do not have, or many re- Senator BAUCUS and Senator GRASSLEY cerned Scientists found that this pro- gions do not have renewable generation on the Finance Committee are working posal would result in $16.4 billion in resources has been made. It is true the to develop a package of tax extenders savings to consumers on electricity best wind, geothermal, and solar re- and provisions to expand the tax provi- and natural gas bills. It also reported a sources are concentrated in the West. sions that are related to renewables. 7-percent reduction in carbon emis- The entire country has extensive bio- Third, and perhaps most impor- sions. mass potential. As Maine and other tantly, the study—this is the study the A number of other studies found posi- Eastern States have shown, paper pro- Energy Information Administration tive results, even to the point of reduc- duction and agricultural processes are

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7599 available everywhere. We have a chart Defense Council, to the industrial asso- raise the percentage requirement from that makes that point. It shows, up in ciations, to the renewable trade 15 percent to 20 percent. He would like the left-hand corner, biomass and groups, to utilities have all supported to have a chance to have the Senate biofuel resources; on the right side, RPS. We recently received letters from consider that proposal as well. solar insolation resources; geothermal a great many organizations. At this point, I think that gives a resources on the left-hand side; and Let me indicate what these letters general overview of the amendment wind resources on the bottom right. are. First, we have a letter to Senators and the reasons why I think the Senate If Rhode Island and Pennsylvania and REID, MCCONNELL, BINGAMAN, and should support it. I urge all my col- New Jersey and Maryland can imple- DOMENICI, signed by several hundred leagues to vote for the amendment. I ment aggressive standards, then the organizations indicating their strong will also want to address Senator standard we are calling for can be im- support for this proposal that I have DOMENICI’s amendment once he has had plemented in all States. The chart put before the Senate today. a chance to explain that. from the Department of Energy’s Na- I ask unanimous consent that letter I yield the floor. tional Renewable Energy Lab shows be printed in the RECORD. EXHIBIT 1 that virtually every State has the bio- The PRESIDING OFFICER. Without 21ST CENTURY AGRICULTURE POLICY mass production potential to meet this objection, it is so ordered. PROJECT (See exhibit 2.) target. Environmental benefits are EXECUTIVE SUMMARY Mr. BINGAMAN. Next I have a letter clear. America’s farmers and ranchers face un- RPS would result, according to the from Michael Wilson of FPL Group—he precedented challenges and opportunities in Energy Information Administration, in is vice president for government affairs the decades ahead. Globalization, techno- a 6.7-percent reduction in carbon emis- with FPL—saying: Please consider this logical change, trade issues, federal budget sions in the year 2030. That is a reduc- letter an endorsement in the renewable constraints, global warming, high energy tion of 222 million tons in that area portfolio standard amendment that costs, land-development pressures, and in- you intend to offer. creasing environmental and food safety con- alone. RPS standards also benefit the cerns are all likely to have a profound im- economy. It drives job growth. The I ask unanimous consent that be in- cluded in the RECORD following my re- pact on rural communities and on future Union of Concerned Scientists says prospects for sustaining a prosperous and vi- that wind turbine construction alone marks. The PRESIDING OFFICER. Without brant farm economy. At the same time, new would result in 43,000 new jobs per year, markets are opening to farmers that already objection, it is so ordered. are paying enormous dividends. Investments on average. (See exhibit 3.) An additional 11,200 cumulative long- in biofuels projects and wind farms, as well Mr. BINGAMAN. Next, a letter from as the generation of carbon credits, are pro- term jobs will result from subsequent the National Farmers Union directed operations and maintenance. There is viding farmers and ranchers with new to Senators Reid, McConnell, Domen- sources of income that are transforming the another study by the Regional Eco- ici, and myself, saying: On behalf of the rural American economy. nomics Application Laboratory for the farm, ranch and rural members of Na- The 21st Century Agriculture Policy Environment, Environmental Law and tional Farmers Union, we are writing Project was motivated by a recognition that Policy Center, that found that over to urge you to support inclusion of a rapidly changing landscape calls for a more expansive and creative approach to national 68,000 jobs at 6.7 billion in economic strong national renewable portfolio output would result from the develop- farm policy. Sponsored by the Bipartisan standard in energy security legislation Policy Center and chaired by the two of us, ment of the renewable energy capacity and oppose attempts to weaken that contemplated in this amendment. who together have eight decades of experi- when the Senate considers this issue in ence at the forefront of federal engagement According to the AFL–CIO, an esti- the coming days. with agriculture issues, the Project was mated 8,092 jobs would be created over I ask unanimous consent to have launched in March 2006. Its aim has been to a 10-year period for installation and that letter printed in the RECORD. work directly with farmers, ranchers, and O&M on wind power in Nevada alone, The PRESIDING OFFICER. Without other stakeholders to forge bipartisan con- and another 19,137 manufacturing jobs objection, it is so ordered. sensus around a new agenda for U.S. farm would be created. Agricultural inter- (See exhibit 4.) policy in the 21st century. It is our intent to ests have begun to be aware of the po- Mr. BINGAMAN. Finally, I have a put forward a series of recommendations tential and have indicated their sup- that, taken together, can be implemented at letter from the American Wind Energy a net savings to the federal government com- port. Association indicating strong support pared with the current Farm Bill. Specifi- Last month, the 21st Century Agri- for my amendment and concern and op- cally, our recommendations assume that in- cultural Policy Project, under the position to the proposed substitute creased demand for biofuels under an ex- guidance of former Senators Bob Dole amendment that Senator DOMENICI has panded renewable fuel standard will produce and Tom Daschle, issued a report. That offered under the title: Clean Portfolio substantial savings in existing agriculture report made recommendations to sus- Standard. support programs, including elimination of tain the Nation’s farm sector. One of Mr. President, I ask unanimous con- the direct payment program, less reliance on countercyclical and loan deficiency pay- the key recommendations was that sent that this letter be printed in the Congress pass a Federal renewable ments, and more reliance on the market- RECORD following my remarks. place. portfolio standard. I do have executive The PRESIDING OFFICER. Without Programs to sustain the nation’s agricul- summaries of those reports. I ask objection, it is so ordered. tural sector must necessarily evolve to re- unanimous consent that they be print- (See exhibit 5.) flect emerging budget pressures and new eco- ed in the RECORD following my re- Mr. BINGAMAN. Mr. President, we nomic realities, while also being responsive marks. are moving ahead on this bill. This is to the larger concerns and interests of Amer- The PRESIDING OFFICER. Without an important part of the legislation. I ican taxpayers, consumers, and utility rate- objection, it is so ordered. think all Senators have known this payers. Indeed, as taxpayers, consumers, and (See exhibit 1.) was intended to be offered as an ratepayers themselves, farmers and ranchers are best served by well-designed policies that Mr. BINGAMAN. So support for RPS amendment on the floor. I have cer- achieve equitable outcomes, do so in a fis- is strong throughout the Nation. A poll tainly indicated that repeatedly over cally responsible manner, and are carefully recently by Melvin & Associates found recent weeks and even months. So as I targeted to achieve maximum societal bene- that 70 percent of those surveyed na- say, it has been offered and passed in a fits at the lowest possible cost. Fortunately, tionwide supported a 20-percent port- somewhat different forum, three pre- the input gathered through this project from folio standard. That is not what I am vious Congresses in the Senate. I hope farmers and researchers points to promising recommending. I am recommending 15 very much that we can proceed to a opportunities for reforming current policies percent. good debate on this proposal and on the in ways that are responsive to broader pub- But these results were about the lic-interest objectives without in any sense proposal by my colleague from New diminishing the federal government’s long- same in States as diverse as North Da- Mexico, Senator DOMENICI, and then standing commitment to an economically se- kota and Georgia and Missouri and Ari- have votes on those two proposals. cure agricultural base. The recommenda- zona. Environmental groups, from the I know Senator KERRY also has a pro- tions advanced here reflect the view that Sierra Club to the Natural Resources posed second-degree amendment to strategic investments in developing new

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7600 CONGRESSIONAL RECORD — SENATE June 13, 2007 market opportunities and in helping agricul- gibility to obtain benefits through more 3. Rewarding energy-efficient and low-car- tural producers gain a larger stake in high- than one entity should be eliminated. bon emitting technologies; value-added enterprises can reduce farmers’ Second, Congress should eliminate the di- 4. Ensuring that pioneering processes, such need for current safety net programs in ways rect payment program and redirect funds for as those that convert cellulosic feedstocks that are less susceptible to political uncer- this program—along with savings generated like corn stover and switchgrass to ethanol, tainty and international trade rules and that by reduced countercyclical and LDP pay- are economically competitive with fossil are revenue-neutral, in terms of overall fed- ments for corn, wheat, and soybeans—to per- fuels; eral spending. Four overarching themes con- manent disaster assistance and promoting 5. Encouraging farmer ownership of eth- nect these recommendations: new income-generating opportunities for anol plants; Securing a robust, economically vibrant farmers in markets such as biofuels, renew- 6. Balancing domestic tax credits with an future for American agriculture in the 21st able electricity, carbon sequestration, and import duty of similar size, so that U.S. tax- century requires a more expansive and cre- conservation. payers do not subsidize ethanol imports to ative approach to farm policy. A continued Third, Congress should establish a Value- the detriment of American producers. federal commitment to the financial secu- Added Equity Creation Program to provide Extend the small producer renewable fuels rity and stability of the nation’s farm com- farmers and ranchers with no-interest re- tax credit beyond 2008 for plants that are at munity is essential at a time when volving loans so that they can participate in least 40 percent locally-owned and for cel- globalization, technological change, environ- high-value agriculture-related business op- lulosic ethanol plants. Consolidate all cel- mental concerns, high energy costs, inter- portunities, such as biofuels plants and wind lulosic biofuels loan guarantee programs national pressure to cut traditional sub- projects. Producers should be eligible to par- into a single program at USDA and establish sidies, and continued urbanization all pose ticipate if their primary occupation is farm- an energy security trust fund to provide con- new challenges for agriculture. To help farm- ing and should be able to receive up to sistent funding for that program. Success- ers respond effectively while continuing to $100,000 in interest-free loans for equity in- fully commercializing the production of eth- undergird U.S. competitiveness, federal pol- vestments in qualifying value-added enter- anol and other fuels from cellulosic (i.e., icy must evolve to encompass a broader set prises (as certified by the U.S. Department of woody or fibrous) plant materials would dra- of issues and successfully leverage multiple Agriculture (USDA)). matically expand the potential contribution Finally, in recent years, Congress has fre- synergies. of biofuels in terms of displacing current pe- quently passed annual emergency spending An emphasis on new markets and on in- troleum use and associated carbon emis- bills to provide agricultural producers with creasing farmers’ equity share in value- sions. Implementing many existing loan disaster assistance. While these measures added enterprises provides the best founda- guarantee programs through three separate have provided important relief to farmers tion for expanding opportunity in rural com- federal agencies makes little sense. USDA and ranchers, they have been ad hoc in na- has considerable experience in implementing munities. Biofuels, renewable energy like ture and off budget. As a result, Congress wind power, carbon sequestration, and habi- loan guarantee programs and expertise in may decide to establish a permanent disaster evaluating biofuels projects through its Of- tat preservation for recreation and hunting assistance program, administered by USDA, are just some examples of agriculture-re- fice of Energy. Therefore, Congress should to provide ranchers and farmers with assist- consolidate all federal biofuels grant and lated activities that can significantly aug- ance for clearly defined disaster conditions. ment and diversify future sources of income loan guarantee programs at USDA and estab- If so, we recommend that Congress replace lish a national energy security trust fund to for America’s farm families. Targeted poli- the current system of ad hoc off-budget cies are needed to increase farmers’ stakes in provide at least $1 billion per year in loan emergency supplemental spending bills, guarantees and grants to promote necessary the new wealth generated by these emerging make the permanent disaster assistance pro- markets. advances in production technology and bio- gram on-budget as part of the Farm Bill, and science. Increasing the role of America’s farms in include a reasonable benefit cap of $250,000 energy production can be achieved at a net Establish a demonstration cellulosic per farm or ranch in any single year. If a rea- biofuels feedstock program. Congress should savings to the federal budget because in- sonable benefits cap is imposed, net federal creased demand for corn and other crops to establish a new set-aside program to dem- outlays for disaster assistance should be re- onstrate how the cultivation and harvesting serve the rapidly growing alternative-fuels duced compared with the current off-budget market will naturally reduce outlays for tra- of cellulosic feedstocks could be accom- approach. plished in an economically attractive man- ditional ‘‘safety net’’ programs. New eco- To promote biomass-based alternative liq- ner. Following the model of several existing nomic research suggests that explosive uid fuels, Congress should: growth in ethanol production will lead to Expand and extend the recently-adopted programs, the 2007 Farm Bill should provide higher prices not only for corn, but also for renewable fuels standard (RFS) to reach at a modest payment to landowners who con- soybeans and wheat, as acreage now in these least 10 billion gallons per year by 2010, 30 vert existing cropland to grow cellulosic crops is shifted to corn. These market shifts billion gallons per year by 2020, and 60 billion biofuel feedstocks for nearby cellulosic are expected to dramatically reduce counter- gallons per year by 2030, as proposed in bi- biofuels plants in ways that improve wildlife cyclical and loan deficiency payments for partisan legislation introduced in the U.S. habitat, reduce soil erosion, and protect certain crops, potentially freeing billions of Senate. This step would lead to expansion of water quality. New lands to be set aside dollars each year for farm programs that biofuels markets beyond the E–10 market under such a program should be capped at have broad political support and that gen- and spur new investment in the next genera- 500,000 acres for the duration of the 2007 erate promising, and ultimately more self- tion of advanced biofuels technologies, such Farm Bill. Establish policies to encourage a rapid in- sustaining, economic opportunities in the as cellulosic ethanol. crease in the number of flexible fuel vehicles long run. Promote the use of higher blends of eth- Federal action to establish a mandatory anol in the existing fleet of automobiles by sold in the United States and the installa- program to limit greenhouse gas emissions is instructing the Environmental Protection tion of E–85 pumps and blender pumps at gas- sensible and will provide agricultural pro- Agency to conduct analysis of the viability oline stations. For example, we recommend ducers with significant new market opportu- of using higher blends of ethanol (including extending the existing tax credit for install- nities. The agriculture sector is in a unique E–15, E–20, E–30, and E–40) in the existing ing E–85 refueling stations and redesigning it position to lead in—and benefit from—efforts fleet of automobiles by January 1, 2009. to provide relatively greater benefits in the to address climate change. Expanded demand Extend the existing volumetric ethanol ex- near-term to encourage more rapid deploy- for biofuels is an obvious example, but ranch cise tax credit (VEETC) to 2020 while simul- ment of E–85 infrastructure. We also rec- and farm lands are also well-suited for future taneously restructuring this program in ommend clarifying that blender pumps be el- development of renewable electricity sources ways that account for expected growth in igible for the tax credit, since in the long run (e.g., wind and solar power) and carbon se- corn ethanol production under an expanded it will make more sense to install blender questration. national RFS. After the current tax incen- pumps that are capable of dispensing a range tive authorization expires in 2010, Congress of ethanol blended fuels. Congress also SUMMARY OF RECOMMENDATIONS should look for ways to ensure that the cost should consider more attractive expensing Continue to provide economic stability of the tax credit—in the context of other and accelerated depreciation options to en- through existing countercyclical programs, policies and expected ethanol production vol- courage installation of E–85 and blender while investing in market-based opportuni- umes—remains acceptable, while ensuring pumps in lieu of tax credits. ties for agriculture and addressing new that new and innovative biofuels project are To promote renewable electricity produc- sources of financial insecurity through a per- provided the support they need to be success- tion and other renewable energy projects on manent disaster program: ful. Among the criteria that Congress should farms and ranches, Congress should: First, the core of the federal farm program use to design the post–2010 biofuels tax cred- Establish a national renewable portfolio must be a strong countercyclical program its are: standard (RPS) along with complementary based on the two countercyclical elements of 1. Limiting the overall cost of the tax in- policies to promote maximum development the current farm bill: (1) a robust marketing centives to the government; of cost-effective renewable energy potential loan program that treats all producers equal- 2. Encouraging expansion of the industry on agricultural lands. Such policies to pro- ly and (2) a partially decoupled counter- by ensuring that investments in new plants mote renewable energy have been adopted by cyclical program. Individual farm benefits and recently-built plants can be fully amor- 21 states and the District of Columbia and should be capped at $250,000 per year and eli- tized; Congress should now take action to adopt a

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7601 portfolio requirement at the federal level. ties) where such construction or expansion is verifying carbon reductions achieved Moreover, federal policies to promote renew- cost-effective and offers substantial public through terrestrial sequestration. able energy should encourage the siting of policy benefits in terms of facilitating the Establish tax incentives, such as federal new projects on farm or ranch lands wher- development of clean, domestic renewable tax refunds for local and state property ever possible. Given that the use of these resources. Under such a program, loans taxes, for farmers and ranchers who enroll lands would be far preferable to new develop- would be provided by eligible government en- land in a carbon trading program that works ment in wilderness areas and would simulta- tities to qualified private entities seeking to in tandem with entities that buy, sell and neously provide important economic benefits finance eligible transmission infrastructure. trade carbon credits. for rural communities, an appropriate policy Such bonds would assure the availability of Direct USDA to work with other state and goal would be to satisfy at least two-thirds financing for transmission at significantly federal agencies on continued economic and of a national RPS with renewable energy lower cost than presently available in the technical research on different options for production on agricultural lands. In addi- market. They could be used both for new sequestering carbon and on better methods tion, a federal RPS should be designated to transmission and for upgrades to existing fa- of documenting sequestration for market complement and not pre-empt any state re- cilities (for example, to address transmission participation. quirements (which may be more ambitious) constraints in west Texas and Minnesota, To advance widely supported environ- and should apply equally to all large retail where substantial wind development oppor- mental habitat-preservation, and open-space electricity providers. (To simplify implemen- tunities exist, or to access renewable energy objectives while creating additional income- tation requirements and to address supply projects anticipated as a result of the Rocky generating opportunities for farmers and and price concerns, it may be appropriate to Mountain Area Transmission Study maximizing potential business opportunities exclude rural electric coops and small mu- (RMATS) in the Western Interconnect. In ad- related to hunting, fishing, and other forms nicipal utilities.) dition, current private use restrictions appli- of outdoor recreation, Congress should: Expand and strengthen existing programs cable to projects that receive tax-exempt Expand existing conservation programs: outside the Farm Bill that promote renew- bonds should be reviewed to assess whether 1. Expand the Conservation Reserve Pro- able energy development and related tech- they create unnecessary additional hurdles gram at 40 million acres; nology advances. To provide investment cer- to investment. 2. Expand the Wetlands Reserve Program tainty, existing renewable-energy production Explore further opportunities for an ex- at 5 million acres, with annual enrollment tax credits (PTCs) should be extended for ten panded federal role in directly facilitating capped at 250,000 acres per year; years and funding for related research, devel- the implementation of, and providing re- 3. Expand the Grasslands Reserve Program opment, demonstration, and early deploy- sources for, investments to enhance grid ca- at 5 million acres, with annual enrollment ment efforts should be increased. In addition, pacity and to promote a more efficient, capped at 500,000 acres per year; such programs should be modified so that in- seamless, and reliable transmission system 4. Increase funding for the Farm and Ranch centives can be taken against non-passive in- nationwide. Lands Protection Program to at least $300 come. The Community Renewable Energy Reauthorize and expand USDA’s Energy million per year. Bonds (CREBs) program should be extended Audit and Renewable Energy Development 5. Implement the Conservation Security and expanded, with a substantial sum set Program under Section 9005 of the 2002 Farm Program on a nationwide basis on all work- aside for rural electric cooperatives and mu- Bill. This program to assist farmers, ranch- ing lands. nicipal utilities. ers, and rural small businesses in becoming Enact ‘‘Open Fields Bill’’ to provide $20 Establish a Rural Community Renewable more energy efficient and in using renewable million per year in federal funds to supple- Energy Bonds program to provide a federal energy technology and resources has never ment state ‘‘walk in’’ programs that give incentive for local private investment in re- been funded. It should be reauthorized with a farmers and ranchers financial incentives to newable energy to complement the PTC and goal of performing audits of 25 percent of all expand public access to their lands. CREBs programs. This new initiative would farms and ranches over the time horizon cov- EXHIBIT 2 be limited to projects of not more than 40 ered by the next Farm Bill and funds suffi- MW; where at least 49 percent of the project cient to achieve that goal should be appro- Hon. HARRY REID, is owned by entities resident within 200 miles priated in the future. Majority Leader, of the project site. Reauthorize and expand USDA’s Rural De- U.S. Senate. Expand the capacity of the existing federal velopment Business Renewable Energy and Hon. JEFF BINGAMAN, power administration transmission system. Energy Efficiency Program (Section 9006 of Chairman, Energy & Natural Resources Com- The federal power marketing administra- the 2002 Farm Bill). This program currently mittee, U.S. Senate. tions (PMAs) own and manage a vast net- provides a modest number of grants—$23 mil- Hon. MITCH MCCONNELL, work of existing power lines, which should be lion per year—to support renewable energy Minority Leader, U.S. Senate. substantially expanded to provide the addi- and energy-efficiency projects. Future fund- Hon. PETE V. DOMENICI, tional capacity needed to tap cost-effective ing should be scaled up over the next 5 years Ranking Member, Energy & Natural Resources renewable energy resources. Congress should to at least $500 million per year and the pro- Committee. direct the federal power administrations to gram should be expanded to enable partici- Dear Senators REID, MCCONNELL, BINGA- pursue this objective under a structure in pating agencies to provide grants for feasi- MAN and DOMENICI: As a diverse group of cor- which non-benefiting PMA customers do not bility studies and loan guarantees for project porations, manufacturers, electric utilities, shoulder the cost and preference is given for development. As long as feasibility studies renewable energy developers, labor organiza- system investments that maximize prom- are accurately performed, the cost to the tions, farm groups, faith-based organizations ising opportunities for renewable energy de- federal government of providing loan guar- and environmental advocates, we are writing velopment on agricultural lands. Priority antees for up to 75 percent of project costs to urge the Senate to include a national re- should be placed on the expansion of the should be fairly small. In addition, Congress newable portfolio standard (RPS) in energy Western Area Power Administration (WAPA) should consider modifying the program to (1) security legislation that may soon be consid- and Bonneville Power Administration (BPA) increase loan guarantees for cellulosic eth- ered by Congress. An RPS is an essential transmission systems. The PMAs also should anol facilities to at least $100 million per component of a broader national energy be authorized and encouraged to enter into project, and $25 million for other projects, (2) strategy, because it will held the nation to partnerships with non-federal parties for the create a rebate program to streamline the take full advantage of the abundant domes- siting, planning, and construction of trans- application process for smaller, standardized tic renewable resources available for the mission lines; the participation of PMAs can projects by reducing the paperwork burden, generation of electricity. streamline siting by avoiding multiple state and (3) expand eligible applicants to include An RPS is a market-based mechanism that siting authorities. agricultural operations in non-rural areas requires electric utilities to include a spe- The Department of Energy (DOE) should (such as greenhouses) and schools. cific percentage of clean, renewable energy designate the Heartland Transmission Cor- To promote markets for carbon sequestra- in their generation portfolios, or to purchase ridors ‘‘National Interest Electric Trans- tion and other cost-effective greenhouse-gas renewable energy credits from others. By mission Corridors’’ pursuant to the Energy mitigation measures on farm and ranch substantially increasing renewable elec- Policy Act of 2005. Federal assistance in the lands, Congress should: tricity generation, the RPS would enhance form of an expanded role for WAPA as a Establish a national, mandatory, market- national energy security by diversifying our facilitator for planning and investment, and based program to reduce economy-wide sources of electric generation. At a time a 20 percent matching investment from the greenhouse gas emissions that provides sub- when the United States is increasing energy federal government would go a long way to- stantial market opportunities for cost-effec- imports, an RPS would make America more ward addressing cost and siting hurdles, en- tive carbon sequestration on farm and ranch energy self-reliant. The reduction in the use couraging state cooperation, and ensuring lands. Specifically, agricultural producers of fossil fuels to generate electricity would that needed transmission system enhance- should have the opportunity to participate also limit fuel price volatility, which is im- ments are implemented. fully in the carbon markets that will be cre- portant to both industry and consumers. In Congress should authorize $1 billion per ated under a greenhouse gas trading pro- fact, the U.S. Department of Energy’s own year for five years to provide tax-exempt gram. To facilitate this participation, pri- Energy Information Administration has bonds for the construction of transmission ority must be given to establishing robust, found in several studies that an RPS would facilities (or the expansion of existing facili- well-defined protocols for measuring and actually cause natural gas prices to decline.

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Increasing the market share for renewable Wind, EcoEnergy LLC, Electric Power Engi- EXHIBIT 4 energy resources would also have substantial neers, Enerpro, FAW Foundry, Foresight NATIONAL FARMERS UNION, environmental benefits. An RPS is one of the Wind Energy, Excellent Energy Solutions, June 11, 2007. most important and readily available ap- General Compression, Hopwood, Greenwing Hon. HARRY REID, proaches to reducing greenhouse gases from Energy, Hailo, HMH Energy Resources, Majority Leader, U.S. Senate, Washington, the electricity generation sector. In addi- Pandion Systems, ReEnergy, Tamarack En- DC. tion, an RPS also would help reduce conven- ergy, Mariah Power, Molded Fiber Glass Hon. JEFF BINGAMAN, tional pollutants including nitrogen oxide, Companies, Oak Creek Energy Systems, Si- Chairman, Energy & Natural Resources Com- sulfur dioxide and mercury emissions. mittee, Washington, DC. Moreover, a national RPS will produce erra Club, Padoma Wind Power, Project Re- Hon. MITCH MCCONNELL, substantial economic benefits. The addi- sources, RSMR Global Resources, Signal Minority Leader, U.S. Senate, Washington, DC. tional investment in renewable electric gen- Wind Energy, Sustainable Energy Strategies, Hon. PETE V. DOMENICI, eration would create hundreds of thousands The Conti Group, TMA, Inc., Oregon Rural Ranking Member, Energy & Natural Resources of well-paying jobs. In addition, because Action, Venti Energy, Wind Turbine Tools, Committee, Washington, DC. many renewable resources are located in re- Windland. DEAR SENATORS REID, MCCONNELL, BINGA- mote areas, rural America will experience a WindRose Power, Winergy Drive Systems, MAN, and DOMENICI: On behalf of the farm, substantial economic boost. Winergy Power, Appropriate Energy, Castaic ranch and rural members of National Farm- We believe the time has come for Congress Clay Products, Cannon Power, TOWER Lo- ers Union (NFU), I am writing to urge you to to move quickly to enact national RPS legis- support inclusion of a strong national renew- lation. The costs of inaction for our environ- gistics, Energy Development and Construc- able portfolio standard (RPS) in energy secu- ment, national security and economy are too tion Corp., Institute for Environmental Re- rity legislation and oppose attempts to high. Although more than 20 states have search and Education, RENEW Wisconsin, weaken it when the Senate considers this adopted individual RPS programs, the coun- Fallon County Disaster & Emergency Serv- ices, Stevens County (KS) Economic Devel- issue in the coming days. try will not realize the full potential for re- Rural America has the greatest potential opment, Dakota Resource Council, Montana newable electricity without the adoption of a for generating significant amounts of clean, Department of Environmental Quality, West Federal program to enhance the states’ ef- renewable energy. A RPS that ensures a forts. Wind Wires, Interwest Energy Alliance, Con- growing percentage of electricity is produced Thank you for your consideration of this cord Energy Policy Group, Renewable North- from renewable sources, like wind power, important matter. west Project, Friends Committee on Na- will provide long-term, predictable demand Sincerely, tional Legislation, American Lung Associa- that will allow the industry to attract in- GE, BP America, Inc., National Venture tion of the Central States, Tompkins Renew- vestment capital and rural America to har- Capital Association, Miasole, Wisconsin able Energy Education Alliance, Alaska Wil- ness wind energy potential. Power and Light, National Council of derness League, 1000 Friends of Wisconsin, Passage of a robust RPS will significantly Churches of Christ in the USA, Technet, Citizens Campaign for the Environment, accelerate efforts to enhance our energy se- APX, Inc., Alliant Energy, Sempra Energy, Grassroots Citizens of Wisconsin, NH Sus- curity by diversifying our sources of elec- Shell Wind Energy, Inc., Solar Turbines, tricity and limiting our dependence on for- Inc., Business Council for Sustainable En- tainable Energy Association, Southwest Wis- eign sources of energy. Additionally, a RPS ergy, Alliant Energy, Invenergy LLC, Owens consin Progressives. would create new economic opportunities in Corning Composites System Business, Leeco Cabazon Wind Energy, Zephyr Lake Ener- rural America. Local, community and farm- Steel, Clipper Wind Power, Inc., Google, gies, Hodge Foundry, Commonwealth Capital er-owned renewable energy development United Steelworkers, Edison International, Group, Mankato Area Environmentalists, projects are key to providing economic and Pacific Gas & Electric, Union for Reform Ju- Clean Wisconsin, Missourians for Safe En- social benefits, while providing an economic daism, GT Solar, PPM Energy, Inc., Avista ergy, Oklahoma Wind Power Initiative, base for further rural economic development. Utilities, Horizon Wind Energy, Enel NA, OverSight Resources, Kansas Rural Center, A robust RPS would create hundreds of thou- D.H. Blattner and Sons, Applied Materials, Chesapeake Climate Action Network, sands of good paying jobs, provide billions of Inc., Greene Engineers, Oregon Steel Mills, Greenpeace, Southern Alliance for Clean En- dollars in new income to farmers and ranch- LM Glasfiber ND, Inc., Noble Environmental ergy, Clean Power Now, RMT/WindConnect, ers and generate significant local tax reve- Power, enXco, Interstate Power and Light, The Land Institute, Western Colorado Con- nues that can be used to fund other impor- National Audobon Society, American Wind gress, Idaho Rural Council, Clean Water Ac- tant priorities. Energy Association, Blue Green Alliance, NFU believes Congress should move quick- Big Crane & Rigging Company, Iberdrola tion, Coulee Progressives, League of Con- servation Voters, Penn Future, REACH for ly to enact national RPS legislation and we U.S.A., Natural Resources Defense Council. urge you to support efforts to do so during DMI Industries, Union of Concerned Sci- Tomorrow, The Minster Machine Company. floor consideration of the Renewable Fuels, entists, Lake Superior Warehousing, Rocky EXHIBIT 3 Consumer Protection and Energy Efficiency Mountain Farmers Union, Pennsylvania Act of 2007. Interfaith Climate Campaign, Interfaith FPL GROUP, INC., Sincerely, Power & Light, Environmental Law and Pol- Washington, DC, June 11, 2007. TOM BUIS, icy Center, Western Organization of Re- Hon. JEFF BINGAMAN, President. source Council, ATS Wind Energy Services, Chairman, Committee on Energy and Natural BioResource Consultants, Bosch Rexroth Resources, Washington, DC. EXHIBIT 5 Corporation, Castle & Cooke Resorts, DEAR CHAIRMAN BINGAMAN: Please consider AMERICAN WIND ENERGY ASSOCIATION, Chermac Energy Corporation, Dominion En- this letter an endorsement of the Renewable June 11, 2007. ergy, EFormative Options, Energy Unlim- Portfolio Standard (RPS) amendment you Re Please Support Bingaman RPS Amend- ited, Enertech, Environmental Stewardship intend to offer during upcoming Senate con- ment, Oppose Domenici CPS Amendment & Planning, Eurus Energy America, FPC sideration of energy legislation. Hon. HARRY REID, Services, Generation Energy, Green Energy Senate Majority Leader, Washington, DC. As you may know, FPL Group, comprised Technologies, Gro Wind I, Highland New Hon. JEFF BINGAMAN, Wind Development, Knight & Carver, LAPP of two major subsidiaries, Florida Power & Chairman, Committee on Energy & Natural Re- Resources, Louis J. Manfredi Consulting, Light (FPL) and FPL Energy (FPLE), is one sources, Washington, DC. Mackinaw Power, Mizuho Corporate Bank, of America’s cleanest, most progressive en- Hon. MITCH MCCONNELL, Nordex USA, Old Mill Power Company, ergy companies. Our commitment to the en- Senate Minority Leader, Washington, DC. Otech Engineering, Phoenix Contact, Renew- vironment is manifested by FPL’s diverse Hon. PETE V. DOMENICI, able Energy Consulting Services, San generation mix and by FPLE’s largely re- Ranking Member, Committee on Energy & Nat- Gorgonio Farms, SIPCO (MLS newable energy portfolio. FPLE operates two ural Resources, Washington, DC. Electrosystem), TCI Renewables Limited, of the largest solar projects in the world, DEAR SENATORS: As the full Senate begins Tideland Signal, Trinity Structural Towers, over 1,000 megawatts of hydroelectric power, consideration of comprehensive energy legis- Varelube Systems, Wind Capital Group, Wind a number of geothermal projects and several lation this week, the American Wind Energy Utility Consulting, WindLogics, Windsmith. biomass plants. Additionally, FPLE is the Association (AWEA) respectfully urges Sen- PowerWorks, Physicians for Social Re- world’s largest generator of wind power. ators to vote in favor of the Bingaman re- sponsibility, McNiff Light Industry, Citizen’s newable portfolio standard (RPS) amend- Utility Board, Great Southwestern Construc- We appreciate your leadership on this im- ment and against the Domenici clean port- tion, RES America, JPW Riggers, AES Wind portant issue and support your efforts to folio standard (CPS) amendment. Generation, Suzlon Wind Energy, U.S. PIRG, enact a fair and balanced RPS in order to in- In order for our nation to seriously address University of Alaska, Fairbanks, Atlantic crease the amount of non-emitting elec- the challenges of energy security and global Testing Laboratories, National Environ- tricity generation in the United States. climate change we need an effective renew- mental Trust, AWS Truewind, Big Stone Sincerely, able electricity standard that will drive new Wind, CAB, Inc., Bluewater Wind, BQ En- MICHAEL M. WILSON, investment and job growth in the renewable ergy, Competitive Power Ventures, Chinook Vice President, Governmental Affairs. energy sector. The Bingaman RPS proposal

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7603 would assure crucial progress toward this vi- taged because they don’t have wind. As member of the committee, is pretty tally important objective. Unfortunately, a result, they have to go buy or be lucky. He can step down and go out and however, the Domenici CPS amendment in- taxed to offset the differences. That is leave things vacant for a little while, cludes numerous exemptions and loopholes that would undermine the effectiveness of unfair. Many of us believe it is unfair. and the man behind me, LARRY CRAIG, the effort to promote renewable energy. We also believe RPS is not an obsolete will soon take over. No one will know A core weakness of the CPS proposal is its standard but an old one. anything was missed. If anything, they inclusion of language that could allow vir- About 3 years ago, people looking at will figure things got better. He is very tually any form of electricity generation to a broader portofolio of energy said: We good at it, and I thank him for all the qualify as ‘‘clean.’’ The CPS amendment ought to expand the standard. Today’s help he has given me. Other cosponsors would allow the Secretary of Energy to des- mantra in energy, whether it is the are Senators BENNETT, CRAPO, GRAHAM, ignate ‘‘other clean energy sources’’ that could qualify for clean energy credits with- Senators from New Mexico or this Sen- and MURKOWSKI. out placing any parameters on such designa- ator, who is one of the senior members I am saying there is a far better way tions. In addition, it is noteworthy that util- of the Energy Committee, is: Clean. to reach the goals Senator BINGAMAN ities would receive credit for electricity gen- America will not build new energy pro- wants, and we don’t have to harm so erated from technology that captures and duction unless it is clean. That is what many States in doing it. What we stores carbon, but the amendment does not RPS was originally heading us to- ought to know right up front is that specify that a utility must actually employ you have to go ahead and choose some- carbon capture and storage to receive cred- ward—cleaner renewable energies. So thing. Senator BINGAMAN chose to put its. why shouldn’t we expand that portfolio Also of concern is an important loophole in from wind and bio to some additional two or three things in his. Before I am the CPS amendment that would allow states new forms—new nuclear, very clean; finished, I think I can convince you to waive program requirements. The CPS new hydro, yes, but limited; coal se- that everybody who has looked at it amendment would allow states with existing questration or carbon sequestration, says that in its application, it is pre- requirements to opt out of the Federal re- clean; efficiencies, less use, less de- dominantly a wind amendment. It says quirements based solely on the state’s own a couple other things, but when you determination that it has a measure in place mand. Shouldn’t they also be in this that is ‘‘comparable to the overall goal’’ of new portfolio? I say yes. America, look at it as to what is done, I am safe the Federal program. This vague standard is when they understand it, would say in calling our battle a battle between not further defined. In contrast, the Binga- yes. wind in every State, forced upon them man RPS proposal would not interfere with Right now there is a niche market, a at the level of 15 percent of what their the ability of utilities to comply with state very narrow one, for limited use in cer- utilities use in energy. Every single RPS programs. The state opt-out provision tain capacities and greater use in oth- State will have to have that by a time in the CPS proposal would lead to substan- ers. I see windmills coming up across certain, whether they can do it or not. tially reduced renewable energy investment If they can’t do it, they will be penal- and employment. my State today. Why? Because we have Our nation’s citizens overwhelmingly sup- wind, and they are subsidized. There is ized. port increasing the generation of electricity an advantage to do so. But you don’t I want to take a quick look at this from renewable sources like wind, biomass see windmills coming up in Florida and map. Here is a map that shows what we and solar power. The Bingaman RPS amend- other places in the South because there are talking about. If you look at it, ment would meet this demand and put our is not the kind of prevailing winds that you see the United States. You see the nation on a path that increases the role of sustain a 25- to 30-percent production eastern seaboard is white. Then you see clean domestic energy in meeting our elec- some inlets of water. Then you see it is tricity needs. We urge its enactment without efficiency of these particular kinds of the addition of weakening changes such as units. white again. That means there is not those included in the Domenici CPS amend- Senator DOMENICI has just arrived. I enough wind in those areas to move the ment. will let him pick up the debate because wind turbines enough for them to be Thank you for your time and attention to he has led with this issue. I have been used to accomplish the goals of this this vitally important matter. a supporter of it and have helped de- bill. Then if you look out in the west- Sincerely, velop this issue. I believe it is time we ern part, you see very big pieces of the RANDY SWISHER, West that are white, all the way Executive Director. modernize, move to clean energy, and reward the utilities that produce clean through this white versus blue and The PRESIDING OFFICER. The Sen- dark blue. The white is what Senator ator from Idaho. energy. It does not disadvantage an BINGAMAN calls wind energy. It is Mr. CRAIG. Mr. President, Senator RPS. It simply expands and modernizes clean, but it is wind. I don’t believe we DOMENICI will be to the Chamber in a it into the concept of energy we are should do it that way. few moments and is preparing to speak looking for today in the American en- I have said, since you all want some- to the second degree to the Bingaman ergy portfolio. thing, I am going to suggest that you amendment the chairman has outlined. I yield the floor. want clean—not his words, my words— In doing so, I will touch for a few mo- The ACTING PRESIDENT pro tem- a clean energy portfolio. If it is clean ments on some of the differences be- pore. The Senator from New Mexico. and available, you ought to put it in so tween an RPS and a CPS and some of Mr. DOMENICI. Mr. President, I they can use it. So you will find that is the value of broadening the portfolio apologize to Senator BINGAMAN for not what I have done. The clean energy Senator BINGAMAN is talking about to hearing all of his speech. I was de- portfolio standard provides a com- create greater advantages nationwide tained. They told me he had started. I for a larger amount of clean energy. thought they would tell me a few min- prehensive, technology-neutral pro- There is no question that RPS, as we utes before. I had to drive from down- gram to ensure that clean energy will know it, invented in the mid-1990s as a town. I apologize for that. make up for an ever-increasing portion concept, evolving now to 23 States hav- Senator BINGAMAN and I have been of our Nation’s electricity operation. ing accepted some form of an RPS doing our best to remain bipartisan. The clean portfolio standard requires standard, has a very strong bias for But on this issue, I can’t do that. He electric utilities to produce a set per- wind and biomass. It is there. We sub- will go his way and I will go mine. His centage of electricity from clean en- sidize wind today. The letter the Sen- amendment is on the bottom and my ergy sources, ramping up to an enforce- ator introduced from the wind industry amendment is on top. I have offered able goal of 20 percent by 2020. So it is is reflective of the phenomenal subsidy mine as a second-degree amendment to 20 by 20, and it is a clean portfolio. they get and the advantage they get. his. My recollection of how we do this, Rather than pick winners and losers— We create a market niche for them when time has run out, unless other ar- and I stress this—rather than pick win- with an RPS, and then we subsidize rangements are made—and they could ners and losers between various clean them. Frankly, I am for that. Wind en- be—mine would go first. technologies that are or will be avail- ergy and the more of it we can have is I thank the cosponsors. Senator able in the future, the clean portfolio the right energy, along with all other CRAIG has just told us that he is a co- standard provides for all sources of forms. sponsor. He worked very hard. Clearly, clean energy—including solar, wind, What the Senator did not say was the you can see from the morning’s work geothermal, biomass, landfill gas, hy- Southeast is dramatically disadvan- that Senator PETE DOMENICI, ranking dropower, new nuclear power, and fuel

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7604 CONGRESSIONAL RECORD — SENATE June 13, 2007 cell quality—under the program. The ers. Unlike the RPS, the clean port- portfolio is almost all wind. How many clean portfolio also provides credit for folio standard recognizes that regional years do we intend to support wind innovative technologies that will allow differences in resources and geography with a subsidy so that this system will future traditional fuels to be burned in mean that we can’t create a one-size- work? Without wind, it will not work. a way that captures and sequesters car- fits-all. That is what I believe. That is It seems like right now, without a sub- bon emissions. We are going to do that. what I believe the Senate is going to sidy, it will not work. I do not know Somebody is going to make that break- say. Why pick a one-shoe-fits-all, when what the scientists working on it say. through. you can’t get it in. You can’t get any Will it soon not need any subsidy? Our bill provides that they can come foot in on the white up here in the They may say the subsidy can start in. Credit is further provided for reduc- north because you can’t get that much going away. Or how many years will it tions in electricity usage from pro- in the foot. You can’t create one that be they will have to have it? That puts grams that provide efficiency and will put it in and still have essentially me to thinking whether you should lower the amount of power that needs what is in the Bingaman amendment. have it at all. to be generated in the first place. Take a look at the chart from the Today, we have only Senator BINGA- Energy efficiency efforts such as de- National Renewable Lab. It shows MAN’s amendment and mine—both of mand response should be part of the so- where our Nation’s wind resources are them. His has all wind, and we have lution. Everybody tells us that demand located. Wind has no application in the some wind, so we are kind of admitting response is a way that, by managing it Southeast. The resources simply are we are going to keep it as long as we properly, you can get a very significant not available in an entire region of the can and pay for it as long as we can so savings. country. we can have that kind of nationwide— Finally, since we have faith in Amer- We cannot ignore the reality that or partially nationwide—program. ican engineers, the clean portfolio utilities in some regions cannot meet For the one I suggest, the clean one, standard encourages innovation by giv- the RPS mandate with the limited re- obviously, we use less wind and will ing the Secretary of Energy authority sources permitted because they are lo- still be clean, and no States will pay to provide credit for new clean tech- cated in regions that are not blessed any fines, no States will be given any nologies that may just be a twinkle in with ample renewable resources. slips that they are entitled to money in the inventor’s eye but which may revo- Wind power is the clear winner under the future. lutionize the way we produce and use an RPS. Advocates of the Federal RPS The clean portfolio standard results electricity. If that occurs during the call it the ‘‘wind power legislation.’’ in more clean energy actually pro- time, clearly it should be permitted to They are right—the only way to reach duced. It is not watered down. The come in. It doesn’t have to be here yet. a 15-percent requirement from the lim- clean portfolio standard would impose If it is invented in 5 years, we thank ited number of renewable resources a 20-percent standard—a full one-third the Lord and put it in and use it. We permitted under the Bingaman amend- higher—yet the proponents of the RPS don’t operate in stagnation and say: ment is from wind power. claimed this is a ‘‘watered down’’ pro- You are outside of our window. You are Wind is the clear winner in the RPS. gram. What is their complaint? That clean, but you don’t come in. We don’t This chart I have in the Chamber is we allow a greater number of resources give you credit. You go on with that based on an estimate prepared by Glob- same old wind technology. to qualify for credits under this pro- I am going to invite my friend from al Energy Decisions. As you can see, gram? It is true the clean portfolio standard Tennessee, LAMAR ALEXANDER, to come wind will be used overwhelmingly to down and share again with us what he attempt to meet the RPS requirement. allows the use of any nonemitting thinks about what he calls a wind The Union of Concerned Scientists con- source of power: including expanded economy. I can’t give that speech. I am curs, estimating that two-thirds of the hydropower, new nuclear powerplants, not that good. But I sure listen to him RPS requirements would likely be met fuel cells, clean coal technologies that because I think he is right. I don’t be- by new wind generation. I have told capture and sequester carbon, and en- lieve we want wind as the test of pro- you that already, that it would be al- ergy efficiency to meet the 20-percent viding an alternate renewable in every most all wind. Now I am telling you standard. State in the Union, even if there is in- that scientific groups that analyzed it Thus, the clean portfolio standard al- sufficient wind. And we don’t want agree with what I said. lows the use of a greater variety of those States paying fines because they The Federal Government has sup- technologies to meet a higher stand- can’t come in. I don’t think Senator ported wind power development since ard. The goal of this amendment is to BINGAMAN wants to pull out the 1992. I am not saying that is wrong. In provide a greater amount of clean en- States—I don’t know how many it fact, there will be much wind produced ergy from a greater diversity of energy would be, 10, 12, 13—and say: We aren’t under the Domenici amendment be- sources. Obviously, the clean portfolio going to do anything there. I think if cause much of the renewables will be standard does this much better than he did, he couldn’t call it national. But wind. It is that every State will not be the RPS proposal. he certainly would gain a lot of support required, and some will not have any Mr. President and fellow Senators, if it was fair. To make it fair, you can- because they cannot produce any. the clean portfolio standard allows not impose the same regulated wind re- The Federal Government has been al- States that develop their own portfolio quirement on States that have no wind lowing a production tax credit since we standards to opt out of the Federal pro- and then say: Let’s vote on this bill. first adopted it in 1992. Since then, we gram. Some are trying to label this The bill should not be voted on in that have spent in excess of $2 billion on provision as a loophole. It is not. In- way. In fact, those States that have it wind power development—from R&D, stead, it is a recognition that States that way ought to come down here and to the tax credit, to clean renewable should be afforded the right to develop say: We can’t vote on this bill. It is so energy bonds. their own clean portfolio approaches obviously wrong that we should not do We have made a lot of progress in the without Federal interference. We it. past 15 years. In 2006, installed wind should not penalize those States that Finally, since we have faith, we are power capacity was 11,600 megawatts— already have forged ahead by imposing going to expect innovation to be of- enough to power 3 million homes. The an inconsistent Federal mandate. fered to the Secretary of Energy while wind industry continues to grow. With The Federal RPS could cost billions. the years run. That innovation, if it a good subsidy, we continue to give it Here is an estimate prepared by Global produces something, will come to us to them. An additional 3,000 megawatts Energy Decisions. GED estimates and be put into the package we are is going to come on line by the end of which States can and cannot comply talking about that will start taking 2007. with a Federal RPS. As shown on the away white and turning it into blue be- So we support wind power. Wind chart, the orange States do not have cause we put new technology into the power is included in the clean portfolio the necessary renewable resources to area. standard I offer today. comply with an RPS. The majority of Unlike the RPS, the clean portfolio, What is interesting is—you have to the States—27—will not be able to the CPS, doesn’t pick winners or los- think ahead with me—the Bingaman meet the mandate.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7605 Let’s look at this another way—by rise to express my support for the watt-hour for the first 10 years you had population. This pie chart I have in the amendment offered by the senior Sen- one of these new nuclear powerplants Chamber represents those that will not ator from New Mexico. He has thought in production. We extended the Price be in compliance with a 15-percent re- the matter through very carefully and Anderson Act. We had loan guarantees newable portfolio standard. About two- described, I think, a hopeful approach, for the construction of new nuclear thirds of the U.S. population—66 per- one that recognizes technology in the plants—the first six, I believe. We had cent—will not be able to meet the new energy business is constantly chang- a substantial increase in funding for standard. ing, that opportunities are arising that nuclear research and development, and How will the States’ inability to we may not even think of now. we had a transfer to the Federal tax- meet this new electricity mandate im- One area where I have shown an in- payer of much of the expenditure for pact consumers? It is going to cost bil- terest is tidal energy, and we are in the safety and security that would other- lions. infancy of finding out about that. We wise have been borne by the industry. I have another chart. According to need to have an open-ended oppor- So there are a lot of things in there the study prepared by Global Energy tunity to find alternative energy to support the nuclear power industry. Decisions, the cumulative costs to con- sources. I still believe those are very good pro- sumers to comply with the RPS is $175 So with that, I thank the Senator visions, and I am in no way backing billion. The States hit the hardest are from New Mexico for his leadership on away from those. But now my col- those in the Southeast without access this issue and am happy to be a cospon- league has come to the floor and said: to wind power; Florida, Georgia, North sor of his amendment. OK, now let’s give them another sub- Carolina, Alabama, Kentucky, Ten- The ACTING PRESIDENT pro tem- sidy, another incentive to build nuclear nessee, Arkansas, Louisiana, and South pore. The Senator from New Mexico. power by including them as one of the Carolina. Mr. BINGAMAN. Mr. President, let ways you would meet the requirement The EIA recently concluded a study me make a few comments in response of this clean energy portfolio standard. on the 15-percent RPS mandate and to my colleague’s statement and in op- As I am sure anybody who was pay- found it would cost consumers $21 bil- position to his amendment, which he ing attention to our discussion yester- lion. Obviously, that is still a tremen- has designated the clean energy port- day would know, I believe Senator dous cost to pass on to the consumer. folio standard. I think people need to DOMENICI made this point very strong- However, the EIA has used some ques- understand what his amendment pro- ly: Since we passed the 2005 bill, there tionable assumptions in its analysis vides, and let me try to explain that. has been a resurgence in interest on that have been rejected not only by the This amendment purports to be sig- the part of various companies that utility industry but by all 10 South- nificantly stronger than the 15-percent want to build new nuclear powerplants. eastern public utility commissions—bi- requirement I have proposed as part of I think there are some 30 letters of in- partisan watchdogs for the ratepayers. the renewable portfolio standard I have tent currently pending at the Nuclear With this amendment, we keep our sent to the desk. It actually, though, Regulatory Commission stating that eye on the ball. The true goal of this accomplishes very little in driving the companies are looking seriously at fil- legislation is an increase in the development of new technologies for ing applications for the construction of amount of electricity generated by electricity supply. new powerplants. So the expectation is clean technologies, reducing the emis- The amendment talks about a target that we are going to have a lot of new sions in our environment. of 20 percent clean energy resources by nuclear powerplants constructed in Our goal is not to promote one or two 2020, but when you look at it carefully, this country over the next decade, and or three specific technologies over an- it is a recipe for business as usual, I, frankly, hope we do because I think other. In fact, the only way to ensure given all the other things that are that is an essential part of meeting our that the cost to the consumer is miti- going on and in the planning stages. energy needs. But we do not need to gated to the maximum extent is to There are various reasons why I say further incentivize that by including avoid the temptation to pick winners that. First of all, it is very clear from them as part of a renewable or a clean and losers between technologies that his amendment that existing nuclear energy portfolio standard as the all move us toward one goal. power is subtracted from the base Domenici amendment would have us To limit the number of qualifying re- against which the requirement is meas- do. sources to a handful of existing tech- ured. Now, what does that mean? What He talks about how the amendment I nologies is to ignore the history of that means is that instead of taking have offered is strictly a wind type of rapid acceleration of scientific and 100 percent, you say: OK. How much of incentive; it is a program to encourage technological development in this our current electricity supply comes construction of more wind energy. country. from nuclear power? About 20 percent. That is directly contrary to what has Do the sponsors of the RPS truly be- You subtract that, and you are then been stated by the Energy Information lieve that innovation is dead? Only a left with the remaining 80 percent; and Administration. In their analysis, they handful of existing technologies qual- that remaining 80 percent is what he concluded very clearly that wind en- ify under the RPS. This assumes there calculates his 20 percent against. So, in ergy would be expected, under this will be no breakthroughs in the way we fact, 20 percent of 80 percent gets you amendment I have offered, to increase produce electricity for the next 23 down to 16 percent—rather than a 20- 50 percent; that biomass energy pro- years. percent requirement. duction, electricity production from I believe the incentive of a clean He also has a provision in here that biomass, which is already twice as portfolio standard, combined with envi- says incremental nuclear power is large as energy production from wind, ronmental concerns and rising prices counted for full credit. Now, that would be expected to increase 300 per- for traditional fuels, will produce an means any new powerplant that is cent rather than 50 percent, as is the ideal climate for technological innova- built is new energy and helps to meet case with wind; and that energy pro- tion. the requirement that would be imposed duction from solar would be expected I ask my colleagues to support this by his amendment. Let me say, first of to increase 500 percent. So it is clear to amendment. I think it is the best way all, I worked very closely with Senator me that this is not just a wind energy to do it. We will have more to say dur- DOMENICI in supporting additional in- amendment I have proposed. Our ing the afternoon. centives and additional supports—sub- amendment talks about meeting the With that, I yield the floor and thank sidies, in fact—for the nuclear energy requirements from solar power, from the Senate for the time I was given and industry in the 2005 Energy bill we wind power, from geothermal power, for listening. passed. We put a variety of things into from biomass power, from ocean. The ACTING PRESIDENT pro tem- law to encourage the construction of The Senator from Utah was just on pore. The Senator from Utah is recog- new nuclear powerplants in this coun- the Senate floor talking about his sup- nized. try. We put in regulatory risk insur- port for the idea of energy from tidal Mr. BENNETT. Mr. President, I shall ance. We put in a production tax cred- waves. We have that included. That is not take a great deal of time. I simply it, which I think was 1.8 cents per kilo- one of the new renewable energy

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7606 CONGRESSIONAL RECORD — SENATE June 13, 2007 sources which we contemplate. Incre- Let me conclude my comments at Mr. CRAIG. Mr. President, I ask mental hydro—so that if we have a hy- this point by saying that my own read- unanimous consent that the order for droelectric facility and one wants to ing of the proposal Senator DOMENICI the quorum call be rescinded. increase the amount of power from has made here as a second-degree The ACTING PRESIDENT pro tem- that facility, we count that against the amendment to mine is that it really pore. Without objection, it is so or- requirement; landfill gases as well. So I gets us to the worst of all locations in dered. think all of that is included, and all of the debate or in our deliberations on The Senator is recognized. it would be increased significantly. this issue. It is a Federal program that Mr. CRAIG. Mr. President, I will Let me also talk about the issue of does not result in the generation of speak for a few moments. The Senator subsidies. I went through a list of the electricity from clean energy sources from Tennessee is here and waiting for various subsidies we provide in the 2005 beyond what otherwise would be ex- some charts to visit about the issue bill for the nuclear power industry, and pected to happen at any rate. But it that is before us, RPS versus CPS I support every one of those. I think does require utilities to go through standards, that drive the marketplace that was the right thing to do. But let very extensive efforts to track and buy toward cleaner fuels, renewable fuels, me just be clear that we have subsidies and sell credits and comply with a reg- and a variety of different packages. A few moments ago, I mentioned, for a great many types of energy ulatory regime. The Government would when the Senator from New Mexico, sources, including tax deductions, loan have to establish a credit-trading Mr. BINGAMAN, produced a letter from guarantees, liability insurance, and scheme, a tracking system, a moni- the American Wind Energy Associa- provisions for leasing of public lands at toring system, regulations for imple- tion, that in part I believe CPS, based below-market prices. Some, like the mentation—a whole panoply of Govern- on their point of view, had been some- depletion allowance for oil and gas, are ment machinery—but they would do so what mischaracterized by that letter. permanent subsidies that are built into in order to achieve a result that could the Tax Code, and I am not suggesting Now, here is someone who supports have been achieved without the imple- wind. The Senator from Idaho strongly they need to be repealed. I am just mentation of the proposed amend- pointing out the largest subsidy—and I supports wind. We see windmills, large ments. windmills, going up across Idaho. The think any economist would make this So I think it would be an unfortunate point and would agree with this point— Senator from Tennessee would come provision for us to adopt. I hope my out there and say: Oops, there goes the the largest subsidy is an invisible sub- colleagues will agree with that and will sidy, the fact that the environmental landscape. There goes the vista. The vote against the Domenici proposal Senator from Idaho is a little con- impacts from use of fossil fuels are no- and, of course, as I said earlier in the where reflected in the cost of those en- cerned about that, too, because some of debate, a vote in favor of the one I pro- those beautiful high plateaus of Idaho ergy sources. That is what has caused pose. our problem with greenhouse gas emis- are now being dotted with windmills. Let me conclude with that. I know At the same time, there is no ques- sions. That is why—it does not cost my colleague may wish to speak some tion that wind remains a valuable anything to pump 100 tons of CO or 2 more, and I know there are others com- source, and we are subsidizing it and other greenhouse gases into the atmos- ing to the floor intending to speak as supporting it. But I don’t think we phere. There is no cost to the person well, and there may be additional op- ought to bias the marketplace toward who is producing their energy for those portunities for me to add to these com- it entirely, and that is why you now fossil fuels. There is a cost to society, ments as the afternoon progresses. see a new standard offered as a second- and we are beginning to understand The ACTING PRESIDENT pro tem- degree amendment called CPS, clean what that cost is. But the idea of a pore. The Senator from New Mexico is portfolio standard. major impetus for the renewable port- recognized. When I say that, let me make the folio standard I have offered is that we Mr. DOMENICI. Mr. President, I point that is important, that I think is would reduce dramatically these green- would say to Senator BINGAMAN that I critical. The American Wind Energy house gas emissions and provide incen- have nothing to say now for myself, Association, when they mischarac- tives for the development of these but I did want to tell him there are a terized clean portfolio standard, did so other technologies. There are already couple of Senators coming shortly. I in the following ways: The proposed incentives for the improvement in the know about the time they are coming. CPS clearly requires carbon capture development or improved use of nu- I don’t want to speak before they come, and storage. They say it does not. The clear power for energy production, and, but if Senator BINGAMAN wants to pro- word ‘‘sequestration’’ means carbon as I say, I support those. ceed rapidly, we could do that. It will capture and storage, and you don’t get Let me also talk a little about this be 15 or 20 minutes before they arrive. a credit for it until you do it. I think proposal that States can opt out. First, I yield the floor, and I suggest the ab- that is clear. I think that was a let me mention that the Secretary can sence of a quorum. mischaracterization. CPS clearly add others. I think that is a very major The ACTING PRESIDENT pro tem- states that any additional clean tech- loophole, for us to essentially say to pore. The clerk will call the roll. nologies beyond already highlighted the Secretary of Energy: It is up to The bill clerk proceeded to call the would require the Secretary of Energy you; if you find something else that roll. to determine, if they apply through a you believe ought to be included in the Mr. BINGAMAN. Mr. President, I ask rulemaking process. In other words, no way we meet essentially this 16 percent unanimous consent that the order for easy rides and no opt-out. requirement, then add that in. I think the quorum call be rescinded. We have 23 States that have some the idea that States can opt out is un- The ACTING PRESIDENT pro tem- form of RPS, renewable portfolio fortunate, indeed. Obviously, many pore. Without objection, it is so or- standard. They have done it on their States have chosen to put in place dered. own. The Senator from New Mexico their own renewable portfolio stand- Mr. BINGAMAN. Mr. President, I ask makes that point very clearly. There is ards. Nothing in my amendment in any unanimous consent that Senator a desire in our country today to move way overrides those States’ proposals. SNOWE from Maine be added as a co- us toward renewables and a cleaner What we try to do with the proposal sponsor to the underlying amendment I portfolio standard, but there is no opt- I put forward is to set a national min- have sent to the desk. out in CPS. They come to the Sec- imum. We say you should at least do The ACTING PRESIDENT pro tem- retary, and the Secretary certifies that this 15 percent. If you want to do some- pore. Without objection, it is so or- which they already have, if it fits with- thing else, have a go at it. If your laws dered. in the portfolio that is being proposed provide for something else, then so Mr. BINGAMAN. Mr. President, I as a CPS. There is no State opt-out in much the better. But we do not say to suggest the absence of a quorum. that provision. CPS allows the States States: You can opt out of any Federal The ACTING PRESIDENT pro tem- with existing clean portfolio programs requirement. I think to do so essen- pore. The clerk will call the roll. to certify. tially eliminates any coherence we The assistant legislative clerk pro- I think that is a very important and might have in the system. ceeded to call the roll. necessary statement to make. I don’t

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7607 see that as an opt-out, I see that as they come along. Yes, you will be sub- retary and say we are opting out—in- conforming, giving credits to, and sidized, but you will not have exclu- clude us out—and that clearly would causing those who have already taken sivity. let me out of the program. the initiative not to be penalized. It is I think for the West and for the mar- So I don’t think the bill says what arguable that the RPS that is being velous open spaces and the vistas of the the Senator has indicated. proposed in the Bingaman amendment West, that is not all a bad idea. While Mr. CRAIG. Well, if it doesn’t, I am would cause them to have to reshape or I promote wind, and wind is now com- one who would change that. It is clear- conform because they are all a little ing to Idaho, I don’t think it ought to ly not my intent, nor I believe the in- different or they couldn’t gain as much be exclusive in the market. As I have tent of CPS, to allow States to opt out. credit under an RPS as they could a said before, and the maps have been It is to broaden the portfolio standard, CPS. But that we don’t know. What we shown, why disadvantage the South- not to opt out because I think, with 23 do know is, no State opts out. east? Why say to the Southeast you States now moving in that direction, We are now talking about a Federal have to go buy it because you can’t there is a recognition of the value of standard against a myriad of State produce it? Let’s give them an oppor- some of this. If there needs to be a cor- standards in which 23 States have al- tunity to be as clean as everyone else rection for your satisfaction as the ready established some form of renew- wants to be by giving them the advan- chairman of the committee, I am cer- able portfolio. There is no uniformity tages of all that is necessary. tainly one who is willing to make that. in that 23–State standard, so, as I said, Mr. BINGAMAN. Mr. President, I ap- But it was my understanding and my it is very difficult to comply with the preciate the comments of my friend reading of the language that the Sec- standard. CPS is flexible enough, that and colleague from Idaho. I would just retary of DOE has the right to certify, it will not allow States to opt out. direct a question to him and see if I am and in certifying could allow based on Deduct nukes from the base. By add- confused or he is confused, or just the standard met an opt-out. ing nuclear—new nuclear—we will have where the confusion lies. He says there Mr. BINGAMAN. Mr. President, I ap- a much broader portfolio than I think is not authority in the Domenici pro- preciate the comments from my friend. I would just say he is describing a pro- Senator BINGAMAN’s RPS. Adding nu- posal, the clean energy proposal; that clear does not detract from the accom- there is not authority for a State to vision in an amendment that is not be- fore us. I want to point that out to my plishments of that bill. It modernizes opt out. Here is the sentence on page 9 colleagues. the bill. It brings us to where Amer- of that legislation. It says: Mr. CRAIG. Mr. President, we obvi- ica’s thoughts are today, not where On submission by the Governor of a State ously have a disagreement as to what America’s clean thoughts started in to the Secretary— is or is not. But I think we both agree the mid-1990s. Let’s get modern. That is the Secretary of Energy— on a principle that we have just talked Yes, there are a lot of interest groups of a notification that the State has in effect, that have vested interests in the old about. and is enforcing, a State portfolio standard The PRESIDING OFFICER (Mr. standard. There are a lot of interest that substantially contributes to the overall SANDERS). The Senator from Tennessee groups in this town and around the Na- goals of the Federal clean portfolio standard is recognized. tion that move very slowly. They move under this section, the State may elect not Mr. ALEXANDER. Mr. President, I the body politics of their organizations to participate in the program under this sec- tion. think now would be a good time for a slowly so they have to argue what was former Governor to enter the discus- then instead of what is now. What is Now, that clearly states, as I under- sion with my two distinguished col- now in the minds of the average Amer- stand it, that it is entirely up to the leagues. I think the biggest com- ican who looks at new technology is: Is State whether it chooses to participate pliment I have been paid in the short it clean? And if it is clean, it is accept- in the program or chooses not to par- time I have been a Senator was by able. If it isn’t clean, it isn’t. ticipate in the program, and there is no some Washington insider who said, Idaho is privileged at being right at discretion on the part of the Secretary ‘‘Well, the problem with LAMAR is he the top of the States of the Nation in of Energy about it at all. There is no hasn’t gotten over being Governor nonemitting sources, clean air, and less certification required by the Secretary yet.’’ carbon. We are very proud of that— of Energy. There is no requirement I have said to my constituents in Vermont and Idaho. Last year, Idaho, a that the State program meet any par- Tennessee, ‘‘If I ever do, it is time to State that has largely accepted produc- ticular standard other than it con- bring me home.’’ tion in all forms, said no to a coal-fired tribute to the overall goals of the Fed- As I listened to the discussion be- plant. They said no because it wasn’t eral standard. tween the Senator from New Mexico as clean as they wanted it to be. But if To me, that means a State can opt and the Senator from Idaho, I was it were a plant that could sequester, if out of the Federal program, unless I greatly encouraged by the discussion of it were a plant that were clean, and it am misreading it. the Senator from Idaho until the very was coal, why shouldn’t it count today Mr. CRAIG. Mr. President, I can’t last part. I think there should be an in a new standard? argue whether the Senator is or is not opt-out. Why should there not be? Why shouldn’t the marketplace misreading. The intent is for the Sec- What wisdom is there here in Wash- incentivize cleanliness—nonemitting retary of DOE to certify that the State ington, DC that is not there in state sources—instead of the old nonemit- meets those standards, and if the State and local government? ting sources of the past—wind and bio- meets the standard that you and I When I was in Tennessee, I thought I mass? But biomass, under current tech- would put forth, then why don’t they was at least as smart as the Congress nologies, emits some CO2. It is much have a chance to stand down for a of the United States. I woke up every cleaner than most, but depending on time? It is a question of meeting the day trying to do what was best for my the technology involved, is not a per- standard, not ignoring the standard. State. I fought for better schools, clean fect form, if you will, compared to Mr. BINGAMAN. Well, Mr. President, water, clean air, raising family in- wind. But it is renewable, so under that let me just reiterate that the clear lan- comes, paying teachers more. If I had definition, while it is not as clean as guage of the statute states if the State to wait on Washington to do it, we we would like it to be, and it will be in determines that it has a ‘‘portfolio would never have done it. I knew of a the future because it is renewable, it standard that substantially contrib- lot of people who flew to Washington fits into the old standard. utes to the overall goals of the Federal and suddenly got smart, but I didn’t I think those are profound arguments clean portfolio standard, then the think they were smarter than we were. that bring us to where we are today. State may elect not to participate in On issues of clean air, we Ten- And I would like to say to the Amer- the program.’’ nesseans, for example, feel like we care ican Wind Energy Association: You are To me, that is a clear opt-out for the about it a lot. I live right next to the not disadvantaged under CPS, but you State. There is no requirement that Great Smoky Mountains National are not exclusive to the market. You anybody certify or anything else. If I Park. I grew up there. Five generations have to share the riches of growth in a were Governor of New Mexico, I could of my family are buried there. We have clean technology with other forms as type up a letter, send it off to the Sec- a great big clean-air problem.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7608 CONGRESSIONAL RECORD — SENATE June 13, 2007 I might say, both Senators from New sion—no carbon, no mercury, no sulfur, cent of hydropower, and we might be in Mexico are two of the very finest in our no nitrogen. That is 40 percent of the favor of making everybody do a 47-per- body in terms of their ability, intel- power in the Tennessee Valley Author- cent renewable portfolio standard ligence, dedication, and purposes. I ity region, and in the State of Ten- based on our formula. We hope by that happen to have a little disagreement nessee. time that biomass, which is permitted on this issue with Senator BINGAMAN I might say: I have a great idea. I am under the amendment from Senator from New Mexico, but let me go back now in Washington. I am not Governor BINGAMAN, as I understand it, will in- to my point. anymore. I want to require everybody crease in Tennessee. We have a great Growing up and living at the edge of in America to have a 40-percent emis- capacity, we believe, for biomass, espe- the Great Smoky Mountains National sions-free energy standard, and the cially as fuel for cars. Park makes me very aware of clean air way they should do it is to have 33 per- The President of the University of and the need for it, which is why, 2 or cent nuclear power and 7 percent hy- Tennessee was here this morning—Dr. 3 years ago, with Senator CARPER, I dropower because that is my idea. That Peterson—talking with me about a began to work in the Congress for is the way we do it. So, North Dakota, demonstration project they have, stronger standards so we could do more have at it, start building nuclear about ethanol plants that are planned in Tennessee. That is why, as Governor plants, start damming up whatever there. We are right in the center of the of Tennessee, I pushed ahead for more river you have left. I have an idea. nation’s population. We have a lot of and why, as a citizen of Tennessee, I That is the way you should it. land. We have a good agricultural base. went to the Tennessee Valley Author- I wouldn’t say that because I believe Switchgrass could replace the tobacco ity and encouraged them to adopt in federalism. I believe that a lot of the income we used to have in Tennessee. standards that would get more of the best ideas come up from States toward We used to have 60,000 to 80,000 farms sulfur out of the air and more of the ni- the Federal Government. I have no- with a little independent income up in trogen out of the air. That is why I ticed how, over time, California has led the mountains like you have in the have encouraged the Governor of Ten- the country in terms of clean air and great northern kingdom of Vermont. nessee to go further than the Federal clean water. I know Senator BINGA- That would be great for us, so we hope Government is in getting mercury out MAN’s bill would permit us to go fur- biomass really works. of power plant emissions into the air, ther in some ways, but it does not in We like solar. I am the sponsor of the 90 percent instead of 70 percent. That is other ways. What happens with the solar tax credit that passed Congress 2 why I have been meeting with mayors amendment from the Senator from years ago. It is not enough, but I spon- and local county officials in Tennessee New Mexico is this: Even though we sored it. I got an award from the solar to clean the air. We care about it in are on the honor roll in Tennessee, and industry for being for that renewable Tennessee. getting better—I mean, not only did power. I also worked with the Farm It is not necessarily true that it the TVA just reopen the Unit 1 reactor Bureau on renewable power called bio- takes wisdom from Washington to at the Brown’s Ferry Nuclear Plant, it mass. We have the largest production cause us to want to have clean air or is operating today at 100 percent capac- plant for solar technology in America carbon-free air. Witness the fact that ity. in Memphis in the Sharp plant, pro- we are already on the honor roll of I will say a little more in a minute, ducing the solar panels you put on your states leading the way in emissions- if my colleagues will tolerate it. roof. We hope all this works. We even free electricity generation. The one wind farm we have in the hope there might be maybe a solar I see the Senator from Vermont, whole Southeastern United States, the thermal steam plant someday. It is not right in front of me, presiding. He Buffalo Mountain Project in Tennessee, there today. should be very proud of Vermont as his operated 7 percent of the time in Au- TVA needs 31,000 or 32,000 megawatts state is No. 1 in the country in terms of gust when we are all sitting on our of power every year to provide us with carbon-free emissions. Vermont gen- porches, sweating and fanning our- clean, reliable, inexpensive electricity, erates its electricity from forms that selves and wanting our air-conditioners and the potential for solar with the are free of carbon emissions. I assume on, so wind energy doesn’t help us in present technology, the TVA says, is that among Senator BINGAMAN’s goals our part of the country. So we are at 40 less than a Megawatt. The solar indus- in the energy legislation before us is to percent emissions-free electricity gen- try would say it is more. What if it is encourage carbon-free emissions so eration. So how about a 40-percent five times more? What if it is 10 that we can deal with climate change. portfolio standard for the whole coun- megawatts, or 20 megawatts? There is I happen to be one of those who believe try, with 33 percent nuclear power and not sufficient potential in the next 10 climate change is a problem and that 7 percent hydropower? years for solar and wind in the south- human beings are a big part of the That probably wouldn’t be fair to east—which I will show in a moment problem. I am ready to help deal with North Dakota. It might not be fair to we have virtually none of—to meet this the problem. some other States that have, as the idea. But I think that we already are help- brown color indicates on this chart So, what do we get to do? We get to ing in Tennessee—that is my point. In here, a good bit of wind. They can use pay a big tax, a great big tax. What this case, we need Washington to rec- wind. They like wind. They don’t mind good does the tax do us? It comes out ognize what States are doing to solve having great big 300-, 400-, 500-foot of our pockets. We send it to Wash- this problem and not assume that a white towers with flashing red lights ington, and we never see it again. How one-size-fits-all idea which might be you can see for 20 miles. If they want much is it? It is $410 million a year, ac- good for New Mexico, or which might to see them, I guess that is their busi- cording to the Tennessee Valley be good for North Dakota, also is good ness. If they want them and it makes Authority’s scientists, to meet Senator for Tennessee. sense out there, fine. That is their BINGAMAN’s 15 percent renewable port- Tennessee is 16th in terms of carbon- State. But no more would I impose our folio standard. That is real money. By free emissions. In other words, we formula for being clean on them than the end of the ramp-up time in the produce about 40 percent of our elec- should they impose their formula for Bingaman amendment, which is the tricity today from nuclear power and being clean on us. That is the problem year 2020, it would cost, according to from hydroelectric power. All forms of with the Bingaman amendment, I re- the Tennessee Valley Authority, which power have their issues. Hydroelectric spectfully suggest. supplies Tennessee with electricity, it power means you dam up rivers. Some Here we are on the honor roll for would cost the ratepayers $410 million people don’t like that. I have some being clean. We are getting better. to do what, to pay a tax to Washington, problems with that, too, sometimes. TVA is thinking we might open a sec- DC. It wouldn’t clean our air. We are With nuclear power, we have to get rid ond nuclear reactor, maybe a third nu- already on the honor roll for emission- of the waste, and we have not solved clear reactor. Maybe within 10 years— free electricity production. It would that problem yet. But the one problem which in energy-producing time is a just increase our cost. In fact, that we have solved with hydro and nuclear short period of time—we would be up to money might come from money we is that they are clean in terms of emis- 40 percent of nuclear power, 7 or 8 per- might otherwise spend to clean our air.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7609 But here is what we could do with have less reliance on natural gas, and One reason that Chattanooga EPB is in $410 million. We could give away 205 we want less reliance on natural gas. such a difficult situation under the Binga- million $2 light bulbs and have the en- We don’t want to be using natural gas man Amendment, as contrasted with utili- to make electricity. ties in some other parts of the country, is ergy savings equivalent to two nuclear that the amendment is directed at utilities power reactors, or it would be the As we say often: It is like burning the that have their own generation. Because the equivalent of 3,700 great big wind tur- antiques to make a fire. So he is right Tennessee Valley Authority supplies all re- bines that would stretch along all the about that. Why shouldn’t we say but quirements needed to for the Chattanooga scenic ridge lines in east Tennessee, one other form is nuclear power. It is EPB service area, and has an all-require- and nobody would come to east Ten- clean, it is reliable, and it is another ments contract with Chattanooga EPB, it is nessee to visit, to see our mountains. form to consider. And the more we impossible for Chattanooga EPB to meet the Most people who live there would go have it, the less natural gas we have to requirements of the Senator Bingaman’s re- newal portfolio standard (‘‘RPS’’) amend- hide under a rug so we wouldn’t have to use. I also have a letter from Huntsville. ment to S.B. 1419. Senator Bingaman’s see these white towers with flashing Amendment requires that utilities such as red lights that you can see from 10 or This is in Alabama. I would not want Chattanooga EPB obtain 15 percent of en- 12 miles away instead of the moun- you to think I was only arguing on be- ergy sales from new renewable sources by tains. We could pay the electric bill for half of one State. Huntsville, Alabama. the year 2020. While Senator Bingaman’s every Tennessean for a month and a ‘‘Dear Senator SHELBY,’’ in this case. Amendment does allow an option for Chat- half each year with $410 million or we The letter goes on to talk about the se- tanooga to buy renewal ‘‘credits’’ from U.S. Department of Energy, it is at the two-cent could purchase a new scrubber. We vere penalties and the extra costs and the objection they have to this new per kilowatt-hour rate in order to meet the have some coal-fired powerplants. RPS that the Bingaman Amendment would About 60 percent of our electricity tax. I ask unanimous consent to have dictate. comes from coal. TVA has done a fairly We would appreciate your exerting all ef- printed in the RECORD at this point the good job of cleaning up the air with forts within your power to defeat this hor- two letters. that, but they have a long way to go. rific renewal energy ‘‘tax’’; and that you op- There being no objection, the mate- pose, argue against, vote against, and secure Sulfur scrubbers are the main thing rial was ordered to be printed in the all of the assistance that can be mustered they need. They are very expensive, RECORD, as follows: from your fellow Senators to see that this and we could put a new one on every 9 EPB, Amendment is not enacted into law. I am available if there is any additional in- months with $410 million cost per year. Chattanooga, TN, June 13, 2007. formation that we can supply to you in your That is what we could better do with Re Energy Bill—S.B. 1419. $410 million rather than send it up here efforts to help us. Hon. LAMAR ALEXANDER, to Washington, DC. Sincerely yours, U.S. Senator, HAROLD E. DEPRIEST, Here is a letter I got today from the Washington, DC. President and Chief Executive Officer. mayor of Chattanooga, TN, Harold DEAR SENATOR ALEXANDER: I am writing DePriest—not the mayor, president out of concern for the citizens of the greater HUNTSVILLE ELECTRIC UTILITY BOARD, and chief executive officer of the power Chattanooga area who receive their elec- June 12, 2007. company in Chattanooga. I probably trical service from the Chattanooga Electric Hon. RICHARD C. SHELBY, Power Board (‘‘Chattanooga EPB’’). We un- should let Senator CORKER read this U.S. Senate, derstand that debate is presently taking letter since he used to be the mayor in Washington, DC. place on Energy Bill, S.B. 1419. We also un- DEAR SENATOR SHELBY: The Senate is now Chattanooga. But he says: derstand that Senator Bingaman will pro- debating an amendment to the Energy Bill, The Bingaman amendment, if enacted into pose an amendment to the Energy Bill that specifically a Renewable Portfolio Standard law, would have an enormous adverse eco- will, in our opinion, have severe financial (RPS) Amendment. This amendment re- nomic impact on our community. It would consequences upon the citizens of the greater quires all electric systems that sell more result in a two-cent per kilowatt-hour tax on Chattanooga area, who are served by Chat- than 4 million megawatt hours of energy a all electric kilowatt hours that are used in tanooga EPB in Hamilton County, and parts year to generate specific percentages of their the Chattanooga EPB service area. We have of Bradley, Marion, Sequatchie, and Bledsoe load profile from renewable resources. By projected the cost burden that will be im- Counties. 2010, Huntsville Utilities would have to have posed upon those in our service area during We at Chattanooga EPB are asking that 3.75% of its load coming from renewable gen- the years 2010 through 2020. It appears the you do everything in your power to oppose eration sources (solar, wind, etc.); by 2013, local government, local schools, the univer- the Bingaman Amendment, and to encourage 7.5% of the load from renewable generation; sities, businesses and all citizens (including your fellow Senators to also vote ‘‘no’’ with by 2017, 11.25% and by 2020, 15% of load com- those in fixed incomes and having a difficult you to defeat it. We do not oppose energy ing from renewable generation. financial time as it is) will have to pay the conservation or the use of renewable re- Huntsville Utilities is under a long-term, additional sum of more than $133,000,000 . . . sources. But the Bingaman Amendment is 100% contract with TVA and is prevented by over 10 years for their electrical service. not the right way to get it done. contract from developing its own resources The Bingaman Amendment, if enacted into Those are the workers, and those are and from purchasing any form of energy sup- law, would have an enormous adverse finan- ply from any other power supply vendor. the businesses. When businesses come cial impact upon our community. It would Further, Congress would have to pass laws to Tennessee—when Nissan comes or result in a two-cent per kilowatt-hour tax on that would allow Huntsville Utilities to use Saturn comes, when Eastman thinks all electric kilowatt hours that are used in the TVA transmission system to bring in about staying—what is one of the the Chattanooga EPB service area. We have power from other power supply vendors. things they want to know? Can we get projected the cost burden that will be im- Severe penalties are levied for not meeting posed upon those in our service area during the Renewable Portfolio Standard. Penalties reliable, low-cost electric power? the years 2010 through 2020. It appears that Today, we can say yes. to Huntsville in 2010 would be $4.2 million; in local government, local schools, the univer- 2013, $8.8 million; in 2017, $14.1 million, and in Every time we add an unnecessary sities, businesses, and all citizens (including 2020, $19.8 million. charge on that rate, we drive jobs out those in fixed incomes and have a difficult fi- Huntsville Utilities depends on TVA to of Tennessee and we cause people who nancial time as it is) will have to pay the ad- provide renewable energy resources, since it cannot afford their bills to pay them. ditional sum of more than $133,000,000 (col- is prohibited from generating our own en- I believe Senator BINGAMAN would lectively as a group) over 10 years for their ergy, or purchasing energy from other power say, and I will let him say it on his own electrical service. providers by the TVA contract. The frustrating part of the Bingaman behalf, as we develop more renewable Penalties in 2010 of $4.2 million for not Amendment, if enacted into law, will be the meeting the standard are nothing more than power or other forms of power—I am a injustice imposed upon our community. a tax on the citizens of Huntsville. Hunts- big subscriber to this—we bring down There are several states that are blessed ville Utilities is being placed in a no-win sit- the price of natural gas. I helped intro- with plentiful resources of renewable energy. uation if this standard passes. duce a bill called the Natural Gas Price These states would receive favorable treat- Huntsville Utilities is a public power sys- Reduction Act, and I worked with Sen- ment under Senator Bingaman’s Amend- tem which is non-profit and receives all of ment, whereas we in Tennessee and the TVA its energy resources from TVA, which is a ators BINGAMAN and DOMENICI to try to Region would not. We here do not have the public power generation and transmission stimulate growth in other forms of same abundant renewable resources avail- provider to its 158 captive customers. Hunts- power to bring down the price of nat- able to us. In effect, we are penalized, and pe- ville Utilities needs to be exempted from the ural gas. So he is absolutely right. If nalized significantly, simply because of geog- provisions of the Renewable Portfolio Stand- we create new forms of energy, we will raphy. ards (RPS). TVA needs to be the provider of

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7610 CONGRESSIONAL RECORD — SENATE June 13, 2007 these renewable energy resources to its cus- turbines in Tennessee, which in Ten- I yield the floor. tomers. nessee operate 7 percent of the time in Mr. DEMINT. Mr. President, quickly, TVA’s hydro and nuclear generation sys- August. They do not produce much I wish to make a request of the chair- tems need to be used as a replacement for man. I understand the current amend- solar and wind, since hydro and nuclear en- power either. There are proposals on ergy generation are non-polluting. the Senate floor to extend the federal ment will not be finished until tomor- Thank you for your consideration. subsidies for wind power. row. I wanted to get one amendment Sincerely, So back to this wind project, TVA pending. I ask unanimous consent to RONALD W. BOLES, pays 6.5 cents for every kilowatt-hour send an amendment to the desk. Vice Chairman. produced by this wind project. The tax- The PRESIDING OFFICER. Is there Mr. ALEXANDER. Mr. President, I payers pay them another 2.9 cents, in objection? see some other Senators on the floor. I effect, for the production tax credit; Mr. BINGAMAN. Mr. President, I do see Senator DOMENICI, Senator DEMINT, that is 9.4 cents for each one here, and object. I believe we need to complete and there are other Senators here. But this would have the whole Southeast action on the two pending amendments I want to wind up my comments in this running around looking for wind devel- before we take up any other amend- way with a couple of pictures to sum- opers to buy further credits from. We ments or have other amendments pend- marize the point. should all retire from the Senate and ing. Obviously he can send anything he It is a laudable goal to move us as go in the business, it looks like, if that wants to the desk, but as far as calling rapidly as we can to renewable energy. is what we want to do. up any amendment for consideration, I But we should allow the States to But here is my main point, let’s re- would object. move in ways that fit those States. So spect Federalism, let’s honor those The PRESIDING OFFICER. Objec- tion is heard. I think there should be an opt-out for States that are on the honor roll. Let’s Mr. VOINOVICH. Mr. President, I un- States. I think Tennessee should be honor Senator BINGAMAN for wanting derstand Senator SALAZAR is waiting able to say: We have a 40-percent clean to encourage renewable energy. But here. I will not be long. I appreciate his power standard, but it is nuclear and Senator DOMENICI, I would respectfully patience. hydro. We are working hard on bio- say, has a better idea. He would allow First, I associate myself with the mass. As soon as we get that going, we new nuclear power, for example, to be a words of the Senator from Tennessee, will have 50 percent. But we do not part of the mix. Mr. ALEXANDER. I thought he did a fan- have sufficient wind resources not lo- My final comment would be this: As tastic job of outlining why this pro- cated in our scenic mountains. In addi- climate change has become more of a posed renewable portfolio standard is tion, wind is enormously subsidized. concern, and people say we are going to not in the best interests of the United We will be getting more to that this have to deal with it in this generation, States of America. I strongly oppose it year. we have looked for ways to create large because it has not taken into consider- Let’s put up this chart. amounts of clean energy. There are ation the adverse effects on States that TVA looked all around for a place to only two or three ways to do that. depend heavily on coal, such as my locate the first and only utility scale The first is conservation and effi- home State of Ohio. wind energy project in the southeast. ciency. We have barely scratched the I also mention that we have looked First they looked down on Lookout surface. But the second is nuclear at wind power for our utilities. If they Mountain. The people there spent 30 power. Seventy percent of our carbon- could use wind power they would be years restoring the natural beauty to free electricity in America today is nu- using it, because not only would it be this historic location. They did not clear power. So why would we exclude something that would be better taken want to see a 400-foot tower they could that from any standard that allegedly by the citizens of Ohio, but it also see from the whole area up there. So wants us to have carbon-free energy? It would associate them with being more they finally put it on Buffalo Moun- does not make much sense to me. green. They are interested in doing tain, which is also a beautiful place. I respectfully oppose the suggestion that. But the fact is we do not have the Here is what it looks like. They had of the Senator from New Mexico, Mr. environment for that to occur. So I hoped the wind would blow so that it BINGAMAN. I honor his service here. I think even though this proposal is well would produce 35 to 38 percent of the honor his motives here. But I think he intentioned, and I share his concern turbines rated capacity. It operates 19 has a solution looking for a problem. about reducing greenhouse gases, I be- to 24 percent of the time; 7 percent in The problem is, we do not have any lieve his proposal will cause great eco- August. What most people miss with wind in our part of the State, and a nomic distress for minimal benefit. wind power is you use it or lose it. So wind portfolio standard simply does What we need to do when we are if the wind is not blowing, your air not work. It puts a big tax on us we do looking at these things is ask, what conditioner is off. not need to pay, do not want to pay, benefit are we going to get out of it, Even though you have these large does not do us any good. and what are the costs? Figure it out. wind towers all up and down every I yield the floor. A one-size-fits-all Federal RPS man- ridge top in Tennessee, even if you had The PRESIDING OFFICER. The Sen- date ignores the different economic them, you would still need a depend- ator from Ohio is recognized. needs and resources of the individual able powerplant. Wind turbines do not Mr. VOINOVICH. Mr. President, I States. There are significant regional replace your base load. yield 50 seconds of my time to Senator differences in availability, despite re- Here is what it looks like in West DEMINT. newable energy resources. Virginia, which is north of us. It is a Mr. DEMINT. I thank the Senator. I Even among the States that have an different point, but this makes strip will yield back to him immediately. RPS, all have chosen to add tech- mining look like a decorative art. I Mr. DOMENICI. Would you yield 30 nologies that are not usually included mean this ruins, in my view, the tops seconds to me? Would that be accept- in a Federal RPS. Because many of the of mountains. able to you? utilities will not be able to meet an Why would we insist on that with Mr. VOINOVICH. That is fine. RPS requirement through their own Federal requirements to have a State The PRESIDING OFFICER. The Sen- generation, they will be required to that is already on the honor roll for ator from New Mexico. purchase renewable energy credits clean power? There are other ways to Mr. DOMENICI. Mr. President, I say from some other company. Thus, a na- do this rather than raise our rates, to Senator LAMAR ALEXANDER, who tionwide RPS mandate will mean a raise our taxes, drive jobs away, or gave about a 20-minute speech or 25, massive wealth transfer from electric ruin our landscape. whatever it was, that I truly commend consumers to States with little or no I appreciate the chance to talk about you on your understanding of both the renewable resources, such as Ohio, to this. Wind already is highly subsidized problem and the attempted solutions the Federal Government or to States too. The best facts I have suggest we here and the differences between the where renewables happen to be more will be spending $11.5 billion between Bingaman amendment and mine. The abundant. 2007 and 2016, already obligated in tax- way you present it is laudable. I thank In my State of Ohio, we rely on coal. payers’ money, to build these big wind you for that. Eighty-eight percent of our electric

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7611 generation comes from coal. It is esti- look at how much money we are going ergy from somebody else, pay the mated that the proposal would increase to raise and where can we get the big- money out, and then increase your retail electricity prices by 4.3 percent, gest return on our dollars. I do not rates, increase the rates to the folks in a total of a $12.8 billion cost to con- think RPS does that. our inner cities, when they could be sumers by 2030. The 4.3 percent may It is critical that policymakers work taking that same money and putting not seem like a high increase to many, in conjunction with the scientific com- more of it into, for example, ISGC, the but to a family of four on a fixed in- munity to develop policy solutions integrated gas-combined cycle. AEP is come, this is a huge increase. These that are in the best interests of our going to build a 1,000-megawatt plant families may have to make a decision State and Nation. For instance, one that is going to cost an enormous between paying their winter heating area requires further research to cap- amount of money. That is where they bills or putting food on the table for ture greenhouse gases and sequester should be putting their money. They their families. carbon dioxide so we can continue to should be putting their money into I recall a couple of years ago, before rely on coal for energy. We are the technology so that we can capture car- the Environment and Public Works Saudi Arabia of coal. We have 250 years bon and sequester it. Committee, Tom Mullen of Cleveland of that supply. For the past few years Those are the things that would real- Catholic Charities described the direct I have called for a ‘‘Second Declaration ly make a difference. We are fooling impacts of significant increases in en- of Independence,’’ independence from ourselves to say we are going to pass ergy prices on those who were less for- foreign sources of energy, for our Na- this legislation, and it is going to make tunate. This is a quote. He said: tion to take real action toward stem- a big difference. I argue that it is going In Cleveland, over one-fourth of all chil- ming our exorbitantly high oil and nat- to make little difference, and we could dren live in poverty and are in a family of a ural gas prices. Instead of considering spend our money on things that are single family head of household. These chil- them separately, we must harmonize going to make more of a difference in dren will suffer further loss of basic needs as our energy, environment, and economic terms of cleaning up the environment their moms are forced to make choices of and dealing with some of the problems whether to pay the rent or live in a shelter; needs. This is an absolute must as we consider any additional solutions to we all know this country faces. pay the heating bill or see their child freeze; I yield the floor. buy food or risk the availability of a hunger address global warming and other envi- The PRESIDING OFFICER. The Sen- center. These are not choices that any senior ronmental problems. ator from Colorado. citizen, child, or for that matter, person in I have been here, this is my ninth Mr. SALAZAR. Mr. President, let me America should make. year. I have been on the Environment start by thanking Senator BINGAMAN, So, in effect, if we pass this renew- and Public Works Committee for 9 chairman of the committee, and Sen- able portfolio, for people who live in years. The problem in the Senate and ator DOMENICI, ranking member, for my State—and maybe I am being a lit- in the House is that the environmental, their fine work in producing the En- tle bit selfish about the people I rep- the energy, and the economic people ergy bill before us today. This energy resent, but the fact is this is going to don’t get together and put each other’s legislation is important for our coun- increase their energy bills. For those shoes on and figure out how we can try as we move toward energy inde- who are poor, for those who are elderly work together to not only do a better pendence. It is strong on alternative and on a fixed income, this is signifi- job of cleaning up the environment but fuels. It is strong on energy efficiency. cant. utilizing the scarce dollars that are Through the work of the Commerce Another aspect which I think we for- available to make a difference. Committee, it has strong CAFE stand- get about is Ohio is a manufacturing This is an idea of the costs for Ohio. ards that will make all the difference State. We are on the economic fault For example, American Electric Power in the world in terms of how we use line. I wish our economy were as good which, while I was Governor, put on a transportation fuels. It also begins to as the rest of the States in this coun- $650 million scrubber to reduce their do some important work with respect try. We have the same problem Michi- NOx and SOx, it is going to cost them $3 to carbon sequestration. This is good gan has. Energy costs are a huge con- billion between 2010 and 2030; First En- legislation. The amendments and de- cern of our manufacturers, who use 34 ergy, $3.18 billion to $4.6 billion; bates we are having hopefully will percent of the energy consumed in our Duke—this is also another provider of build on that good legislation to get us economy. Due in large part to in- energy—$1.6 billion. to the point where we can deliver to creased energy prices, the United Let’s take the Timken Company, the the President a good bill. States has lost more than 3.1 million heart and soul of Camden, OH. Their The President said in his State of the manufacturing jobs since 2000, and my incremental cost of electricity under a Union that one of the things he wanted State has lost nearly 220,000 jobs. 15-percent RPS will exceed $20 million us to work on was moving forward to I will never forget in 2001 when we per year. They say: get rid of our addiction to foreign oil. had the big spike in gas prices. I be- We would not expect to recoup most of this It is our hope that by working together lieve that was the beginning of the re- increased cost through price increases due to in a bipartisan fashion, as we did in the cession in the State of Ohio. Many of the global competition that we face. Adop- Energy Committee, we will be able to those small companies never recovered tion of a mandatory RPS would clearly place move forward with respect to reaching because, for example, in my city, nat- The Timken Company at a competitive dis- that vision of energy independence for ural gas costs have gone up over 300 advantage vis-a-vis our foreign competitors, the United States. percent since 2000. Think about that, further eroding already slim profit margins, Let me say that I am here to speak and placing increasingly more jobs at risk. the impact that has. Then you add an- in support of the Bingaman proposal other burden on top of that. Rather We really ought to think about what which I am cosponsoring on a renew- than enacting an artificial RPS, which we are doing here today. I don’t think able electricity standard for the Na- will increase costs to our utilities and what we want to do is advantage one tion. Let me at the outset say, we in consumers, we need to be spending this area of the country by having a cost in- the Congress, we in the Nation should money on the development of tech- crease in another part of the country not be afraid. We should not be afraid nology to reduce our greenhouse gases. and see a massive shifting of resources. of having a robust renewable electrical The cost of the RPS to utilities and What we should do is look at the big standard, called an RES, a renewable ratepayers will be better spent on fund- picture and figure out, as Senator AL- portfolio standard. There will be sig- ing the programs we authorized in the EXANDER pointed out, where do we put nificant benefits that will help our Energy Policy Act of 2005, such as car- our money where we can get the great- economies. It will help rural commu- bon sequestration and IGCC tech- est return on our investment. I sin- nities, it will help our environment, if nology, which, as most of us know, are cerely believe this isn’t the way to do we have a robust national standard for not receiving the appropriate funding it. Why would we want to do something renewable electricity. today. that will take a State such as Ohio, Some may say: How do you know It is clear we must get serious about that is 80 percent reliant on coal, and that? I have heard my colleagues on partnerships and strategies that maxi- basically tell our utilities: Folks, you the other side of this amendment argu- mize Federal funding. We have got to are going to have to buy renewable en- ing that we don’t need a national

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The of people in my State in Colorado in ple of Colorado, almost without a first is that it will bolster our renew- 2004, just a short 2 years ago, who made whimper the requirement was doubled able energy production by creating cer- the same argument, that if we passed this year so that now we in Colorado tainty in renewable energy markets. an RPS in my State of Colorado in will be producing 20 percent of our elec- With an RES, producers, developers, 2004, we would see a parade of horribles tricity from renewable energy re- and manufacturers know that there is coming down the pike. sources by the year 2015. That is not a a guaranteed market for renewable Well, in 2004, the voters of Colorado long way away. We are not talking 2050 electricity. They make long-term in- decided on their own they were going or 2040. We are already at 2007. So with- vestments in infrastructure and renew- to take this measure to the voters of in 8 years in Colorado, we are going to able energy development when they the State, and they passed a renewable be producing 20 percent of our energy know that certainty is there, and that portfolio standard of 10 percent by the from renewable energy resources. is what this national RES will provide. year 2015. Because Colorado’s efforts It is not just wind. I come from what That added stability will result in a have been so successful in the last 2 is one of the most remote and rural, second major benefit. That is an eco- years, the general assembly this year poorest areas in the United States. The nomic benefit both to consumers and decided to double that standard to 20 place is called the San Luis Valley. It to communities that assist in produc- percent by the year 2015. What had is a place where you have to struggle tion. been the parade of horribles has not to make a living. But it is a place also As I said, in my State consumers who been a parade of horribles in Colorado that is embracing the new ethic of re- have been participating in a program with respect to the RPS. It has been a newable energy, driven in large part by that Xcel has provided on a voluntary parade of celebration with respect to the renewable portfolio standard we wind energy program have saved a what we have been able to accomplish have in Colorado. Because of that RPS, total of $14 million in 2004 and in 2005. on the ground. the largest utility in our State, Xcel, A 2005 study of the Energy Information Let me refer to two very significant has broken ground on the largest solar Administration found that a modest economic facts and initiatives within utility generator in the United States. national renewable energy standard of our State. One relates to wind. Two That solar electrical utility farm, only 10 percent—only talking in 2005 years ago, we had a very small wind which is now under construction in my about 10 percent by 2020—would result farm. It produced just a few megawatts native valley, is creating jobs for the in savings to consumers of $22.6 billion. of power. That was 2 years ago. Fast- people of the valley. It is something we We are going to do better than that forward to today. Because of the RPS, are very proud of. here because our RES we are proposing in Colorado, today we now have four With the advances being made in is 15 percent. Meanwhile, communities major wind farms in operation. We solar technology, there is no reason in particularly rural communities, thrive have two more wind farms currently most of our States we would not be with new jobs, with new infrastructure, under construction. By the time we fin- able to create a robust addition for our and a new economy that is built on in- ish a year from now, those wind farms electrical needs that actually is pow- vention and investment. will be producing 1,000 megawatts of ered from the Sun. The Union of Concerned Scientists electricity. Our experience in Colorado with re- estimates that a national renewable Let’s put that in a context so people spect to a renewable portfolio stand- energy standard of 20 percent by 2020— can understand what we are talking ard, a renewable electrical standard, we are not proposing that we be that about with respect to 1,000 megawatts. has been an absolutely positive one. It ambitious in this particular amend- One thousand megawatts is about the was one that was approached with ment—that a 20-percent by 2020 stand- equivalent of what we would produce some trepidation a few years ago. ard would spur $72.6 billion in new cap- with three coal-fired powerplants. We Today it is wholly embraced. I ask my ital investment, with $16 billion in in- were able to do that with the power of colleagues in this Chamber today to come to America’s farmers and ranch- the wind in less than 2 years. look at the RPS as something that, in ers, and $5 billion in new local tax reve- What has been the benefit for Colo- fact, is a great opportunity for the peo- nues for rural communities. That is a rado? First and foremost, we are con- ple of this country. If it worked for the terrific shot in the arm for parts of our tributing to the economy of our State State of Colorado, it can also work for country that are dying for these kinds because there were counties, such as the rest of the Nation. of opportunities. Weld, Logan and Prowers Counties that Let me also say that Colorado is not Thirdly, a national renewable elec- I refer to as forgotten America because alone. If you look at a map of the tricity standard will enhance our envi- they have such limited opportunities United States and look at all of the ronmental security and take an impor- out in those rural communities that States that have passed a renewable tant step toward reducing our carbon struggle on the vine every day. What portfolio standard, they are from all emissions. If we were to pass a renew- has happened is the RPS has injected a parts of the country. We now have at able electricity standard of 20 percent new economic vigor into those rural least 22 States that have adopted their by 2020, we would reduce emissions of communities. It is something about own renewable portfolio standard. So if carbon dioxide by more than 400 mil- which the bankers, Democrats and Re- we have 22 States plus the District of lion tons a year—that is more than 400 publicans alike, are all very happy and Columbia that have already adopted a million tons a year. That would be excited. It is something about which renewable portfolio standard, does it equal to taking 71 million cars off of the school boards are very excited as not make sense, instead of having a America’s roads or the planting of 104 well because it has brought significant patchwork of regulation from one million trees in our country. additional tax revenue into the coffers State to another, where you essentially We know an RES by itself will not of some of the rural school districts have no RPS in one and a different solve the global warming problem, but that suffer from not having enough RPS in another, that we have a na- it is, in fact, a significant step in the money for schools or for other public tional standard? From my point of right direction. needs. view, it does. I want to, once again, thank Chair- It also has made sure the people of The mechanism that has been set man BINGAMAN for his leadership on Colorado understand that they are con- forth by Senator BINGAMAN in this leg- this amendment. It is an important ad- tributing to the environmental secu- islation will allow us to have that re- dition to this bill and a leap ahead for rity of our Nation. We are past the de- newable portfolio standard and also our Nation’s energy security. bate in this Nation as to whether glob- will allow us to take into account the It is, at the end of the day, an effort al warming is a reality. The people in different renewable resources for elec- for all of us to embrace a clean energy my State recognize they are making a trical production that we have from economy for the 21st century. A clean significant contribution to dealing State to State. I am very hopeful that energy economy for the 21st century is with the issue of global warming be- the RES before us will ultimately one of the imperative issues that we cause they passed an RPS which has make it into law. can grasp on, we can discover on, on a

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7613 bipartisan basis, for America, and we issuing and serving subpoenas today. and the Department of Justice’s can do it now in 2007. It is not some- He makes the point that these sub- politicization of the hiring and firing thing for which we have to wait until poenas are not merely requests for in- of U.S. attorneys. 2010 or 2011. It is something we can do formation; they are lawful demands on The documents compelled by the sub- now. behalf of the American people through poena include documents related to the Mr. President, I yield the floor. their elected representatives in Con- administration’s evaluation of and de- The PRESIDING OFFICER. The Sen- gress. cision to dismiss former U.S. attorneys ator from Vermont. So we will issue and serve three sub- David Iglesias, H.E. ‘‘Bud’’ Cummins, Mr. LEAHY. Mr. President, I ask poenas today—two seeking the docu- John McKay, Carol Lam, Daniel unanimous consent to proceed just for ments and testimony of Sara M. Tay- Bogden, Paul Charlton, Kevin Ryan, a few minutes as in morning business. lor, the former Deputy Assistant to the Margaret Chiara, Todd Graves, or any The PRESIDING OFFICER. Without President and Director of Political Af- other U.S. attorney dismissed or con- objection, it is so ordered. fairs, and another seeking White House sidered for dismissal since President Mr. LEAHY. Mr. President, I thank documents relevant to the panel’s on- Bush’s reelection, the implementation the distinguished Senator from Min- going investigation. of the dismissal and replacement of the nesota for her courtesy in allowing me Incidentally, Senator SPECTER and I dismissed U.S. attorneys, and the se- to go forward. had written to Ms. Taylor asking for lection, discussion, and evaluation of WHITE HOUSE SUBPOENAS voluntary cooperation. We did this possible replacements. They have yet Mr. President, the reason I speak on more than 2 months ago, on April 11, so to be explained. this sort of stage—instead of doing a there would not be any need for a sub- Among these documents are docu- press conference and calling every one poena. We asked for voluntary coopera- ments related to the involvement of of you about it—today I have issued, on tion. Well, that did not go very far. Karl Rove, Harriet E. Miers, William behalf of the Senate Judiciary Com- As I noted in my cover letter to the Kelley, J. Scott Jennings, Sara M. Tay- mittee, subpoenas to the White House new White House Counsel, Mr. Field- lor, or any other current or former in connection with our investigation ing, I have sent him a half dozen pre- White House employees or officials in- into the firing of U.S. attorneys around vious letters during the past 3 months volved in the firings and replacements, the country. I have spoken recently seeking voluntary cooperation from as well as documents related to the tes- with Mr. Fielding, the White House the White House with the Senate Judi- timony of Justice Department officials Counsel, and I have consulted with the ciary Committee’s investigation into to Congress regarding this matter— ranking Republican on the committee. the mass firings and replacements of part of the reason being: What did they Regrettably, to date, the White House U.S. attorneys and politicization at the tell the Justice Department to say or, has not produced a single document Department of Justice. even more importantly, not to say. Of nor allowed White House staff to tes- It is now clear from the evidence course these would include the purport- tify, despite our repeated requests for gathered by the investigating commit- edly ‘‘lost’’ Karl Rove e-mails that voluntary cooperation over the last tees that White House officials played several months. should have been retrieved by now and The White House’s stonewalling of a significant role in originating, devel- should now be produced without fur- the congressional investigative com- oping, coordinating, and implementing ther delay. mittees continues its pattern of con- the plan and the Justice Department’s The distinguished Presiding Officer frontation over cooperation. Those who response to congressional inquiries may remember when I said—at the bear the brunt of this approach are the about it. Yet to date the White House time when they said those were all lost American people, those dedicated pro- has not produced a single document or and erased—Well, you could not erase fessionals at the Department of Justice allowed even one White House official them. Of course they could be found. who have tried to remain committed to involved in these matters to be inter- The White House dismissively said to effective law enforcement in spite of viewed. we computer experts up here: Of course 1 the untoward political influences from It has been 2 ⁄2 months since Repub- they had been lost. Gee whiz. Golly. this administration, and, thirdly, the lican and Democratic members of the Guess what. They seem to have been in public’s confidence in our justice sys- Senate Judiciary Committee rejected a backup hard drive—like the e-mails tem. That is why I believe we have to their take-it-or-leave-it offer of off-the- for all of us are, like everybody knew do everything we can to overcome the record, backroom interviews with no they were, and notwithstanding the administration’s stonewalling and get followup. We said it was unacceptable. condescending, misleading statements all the facts out on the table—get the We have offered to try to work these of the White House Press Secretary’s facts out so Republican Senators and things out. They have stayed the Office. Of course the e-mails were Democratic Senators and the American course: Take it or leave it. Take it or there. people can see what the facts are. leave it: a backroom, closed-door meet- I am just disappointed that now that Actually, the White House cannot ing, with no transcript and no oath. it turns out they were not lost like have it both ways. They cannot stone- Mr. President, I will leave that one they claimed they were we still do not wall congressional investigations by quickly. As I told the White House have them. We have to go to subpoenas refusing to provide documents and wit- Counsel, I would be subject to legisla- to obtain information needed by the nesses—or saying they might let wit- tive malpractice if I were to ever ac- committee to fulfill our oversight re- nesses testify behind closed doors, with cept on the part of the Senate such an sponsibilities regarding the firings and no transcript, no oath, which neither offer. the erosion of independence at the Jus- Republicans nor Democrats would ever Ironically, Mr. Rove and the Presi- tice Department—probably the great- accept—but then simultaneously claim dent have had no reluctance to com- est crime here. But the evidence so that nothing improper ever happened. ment publicly that there was, in their far—that White House officials were The involvement of the White House’s view, no wrongdoing and nothing im- deeply involved—leaves me no choice, political operation in these matters, proper. But they won’t even tell us in light of the administration’s lack of including former Political Director what they base that on. They cannot voluntary cooperation. Sara Taylor and her boss Karl Rove has have it both ways. Their continuous Mr. President, I thank, again, the been confirmed by information gath- stonewalling leads to the obvious con- distinguished Senator from Minnesota ered by congressional committees. clusion they have something to hide. for yielding. I know she was to go first. Some may hope to thwart our con- Because they continue their refusal, I I yield the floor to the distinguished stitutional oversight efforts by locking issued these subpoenas. senior Senator from Pennsylvania, the the doors and closing the curtains and So we formally demanded—this is man who probably understands the ne- hiding things in their desks, but we what it is—production of documents in cessity of subpoenas better than any- will keep asking until we get to the the possession, custody, or control of body else in this body. truth. the White House related to the com- The PRESIDING OFFICER (Mr. The House Judiciary Committee, led mittee’s investigation into the preser- WHITEHOUSE). The Senator from Penn- by Chairman CONYERS, is likewise vation of prosecutorial independence sylvania.

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I believe when you have the subpoena thing they didn’t say because we know I can’t tell my colleagues the number issued for Ms. Sara Taylor, the White what they said when it is transcribed. I of times I hear from businesses in my House staff, it is appropriate at this am pleased to say to the distinguished State, including manufacturing compa- time. A letter was sent to Ms. Taylor Presiding Officer, the Senator from nies, about the high costs and how they on April 11 requesting testimony and Rhode Island who is nodding in the af- want to get some new possibilities and documents, and there has been no re- firmative, as a former U.S. attorney, a new direction with where their en- sponse. attorney general, and one who has had ergy comes from. The money issue is It is my hope, as I have said at Judi- experience with transcripts, as has the one thing you hear about from indi- ciary Committee meetings, executive chairman and I, it needs to be written vidual consumers, that you hear about sessions, that we will yet be able to down. from businesses, but there is also the work this out with Ms. Taylor on a co- I hope we can accommodate the com- effect it is having on the environment. operative basis without any further peting interests here. There is no doubt Both the Presiding Officer and I serve controversy. there are very important issues in- on the Environment Committee. We The enforcement mechanism of the volved: The request for resignations have heard countless accounts from subpoenas is very lengthy. The last from the U.S. attorneys and the rea- scientists from all over this country, time it was undertaken, with the con- sons why they were replaced. There is from major CEOs of large businesses in flict between congressional oversight no doubt the President has the author- this country, about the change we are and the White House, it took more ity to remove all 93 U.S. attorneys seeing in our climate and about the than 2 years. That would take us into without giving any reason. President chance we have to do something about 2009, after the election of a new Presi- Clinton did that at the beginning of his it. dent. term in 1993. I think it is equally clear So I have to tell my colleagues, in I think with respect to the subpoena the President can’t replace people for my State I also hear from regular peo- to former White House Counsel Harriet bad reasons. There is a suggestion of ple. I hear from hunters who see a Miers, there again the request went out pressure on the U.S. attorney from San change in the wetlands. I hear from some time ago, and they have not been Diego that she was going after some of people on Leech Lake who say it takes forthcoming, and I think it is appro- former Congressman Cunningham’s as- a month later, a month longer than priate to proceed—again, in a manner sociates, who is serving an 8-year sen- usual to put their fish house out. I hear which looks toward conciliation, looks tence, and that pressure was put on from kids wearing little penguin but- toward resolving it without con- some other U.S. attorney in some other tons. I hear from city council members troversy. direction for an improper purpose, and in Lanesborough who are changing out I talked again today to White House that is an appropriate question for con- their light bulbs. I hear from venture Counsel Fred Fielding on the question gressional oversight. We had a lengthy capitalists in Minneapolis who want to as to how we are going to obtain testi- and heated debate earlier this week on get some standards in place so they can mony from executive branch officials the resolution to say the Senate has no invest in this new green technology. I who are high up in the White House, confidence in the Attorney General. hear from people up in Grand Marais, and the President made a televised That was defeated on procedural MN, where I visited 2 weeks ago. This statement some time ago setting forth grounds. area has had tragic fires. When we saw the acceptable parameters from the But the issue of the operation of the those fires going on in California, they President’s point of view. After reflect- Department of Justice is not yet fin- were also raging in northern Minnesota ing on it and talking to members of the ished. This inquiry is very important. and up into Canada. Nearly 200 build- Judiciary Committee—both Democrats Next to the Department of Defense, ings were downed by this fire in our and Republicans—I think that most of which defends the homeland and is our State—some of them beautiful homes— what the President wants can be ac- military defense, next in line is the De- homes that have been in families for commodated. partment of Justice, which deals with years and years and years, rustic cab- He does not want his officials, his terrorism, deals with drugs, deals with ins and businesses. Of course, the peo- employees, put under oath. My pref- violent crime and that department has ple who gathered to meet with me had erence would be to have an oath, but I to function in the interests of the immediate problems. There was no would not insist on that because the American people. And getting to the phone service to many of these places. testimony would be subject to prosecu- bottom of this investigation is impor- Many of the lodges that rely on tour- tion under the False Statements Act, tant for that purpose. So I wanted to ism were having trouble even taking 18 United States Code 1001. appear to make these brief comments, orders. But in the middle of all this, He does not want to have the sessions following the statement by the distin- with these scarred forests surrounding public. My preference again would be guished Chairman. I thank the Senator us, there were people who wanted to to have them public, but I would not from Minnesota. talk about climate change, including insist upon that. I yield the floor. ski resort owners who had seen a dra- He does not want to have the officials The PRESIDING OFFICER. The Sen- matic drop in their profits when we come before the Senate Judiciary Com- ator from Minnesota is recognized. have had less snow and people who mittee, then before the House Judici- Ms. KLOBUCHAR. Mr. President, last were very concerned about their busi- ary Committee, and I think we can ac- Wednesday I came to the floor and in- nesses and the future of this country. commodate that, having members of troduced legislation that would place So this standard is not only impor- both committees—both Democrats and the country on a path toward a better tant for investing in our country for Republicans—in a manageable group to energy future by requiring that 25 per- more jobs and putting a renewable obtain the necessary information. cent of our Nation’s energy, our Na- standard in place that will spur invest- The one point where I think it is in- tion’s electricity, come from renewable ment, it is also important for our coun- dispensable is that we obtain a tran- sources. This made sense to me because try’s future and our environment. script. If you don’t have a transcript, this is what we do in Minnesota. As my A strong renewable energy standard people walk out of the room in per- colleagues know, all good things come is good policy. Let’s look at where our fectly good faith and have different from Minnesota. electricity comes from. Currently, we versions as to what happened. I think But today, Senator BINGAMAN has in- have 52 percent coming from coal. We it is in the interest of all sides to have troduced an amendment requiring that have 15 percent coming from natural a transcript. It is in the interest of 15 percent of our Nation’s electricity gas. We have 3 percent from petroleum,

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What a strong re- United States want to be a leader in be used as a laboratory for the rest of newable standard can do is it can diver- creating new green technologies in the the country. I don’t think he ever sify our electricity sources so we are new green industries of the future, or meant, when he wrote that opinion, not so reliant on energy sources such are we going to sit back and watch the that that should mean inaction by the as natural gas that are vulnerable to opportunities pass us by? Federal Government. In fact, it should periodic shortages or other supply Tom Friedman, who actually comes be the opposite. The States experi- interruptions. A strong renewable en- from Minnesota, wrote a cover story ment, the States show, such as our ergy standard can also save the Amer- for the New York Times Magazine State has, you can put high standards ican consumer money. According to about a month ago about the power of in place, you can start developing these studies, a 15-percent renewable elec- green. He talked about a new green industries, and it is a good thing. tricity standard will save consumers a deal—not like the old New Deal; not It revitalizes our rural economy. It is total of $16.4 billion on their energy necessarily the kind of money we are cleaner for our environment. It allows bills by the year 2030. talking about there, but that the Gov- us to invest in new jobs. Now it is Let’s look at some of the savings. ernment’s role should be to set those time—we have seen the story across What are we going to get if we put in standards and industry will meet them. the country—for the Federal Govern- a national renewable electricity stand- The Government’s role should be to ment to act. ard of the kind I have talked about, seed new research and to promote What I want to see when we vote on which is up to 25 percent, and the kind green technology and direct us that Senator BINGAMAN’s amendment is a that Senator BINGAMAN and I have way; otherwise, if we don’t do that, if bipartisan effort, bipartisan support for sponsored here today at 15 percent by we don’t have the kind of 15 percent this kind of amendment. 2020? We will get 355,000 new jobs, near- standard we are talking about on a na- Let me tell you what happened in our ly twice as many as generating elec- tional level, I can tell you what is State. In February, the Minnesota Leg- tricity from fossil fuels; economic de- going to happen because we are already islature—it is a Democratic State sen- velopment, $72.6 billion in new capital seeing it happen. We no longer are the ate, Republican statehouse—passed investment; $16.2 billion in income to world leader in two important clean nearly unanimously this 2025 standard. farmers, ranchers, and rural land- energy fields. We rank third in wind In fact, for Xcel Energy, our biggest owners; $5 billion in new local tax reve- power production behind Denmark and energy company, it is 30 percent. They nues; consumer savings of $49 billion in Spain. We are third in photovoltaic passed that nearly unanimously, a lower electricity and natural gas bills; power installed behind Germany and Democratic house, a Democratic sen- a healthier environment with reduc- Japan. Ironically, these countries have ate, with a number of Republicans, a tions in global warming, as I discussed, surpassed us using our own technology. majority voting for it, and then they equal to taking nearly 71 million cars They used the technology we developed sent it to a Republican Governor, and off the road; less air pollution, less in our country. We came up with the that Republican Governor signed it damage to land, and better use of our right ideas, but we didn’t capitalize on into law. It is considered the Nation’s water. the innovations with adequate policies most aggressive standard for pro- I have seen it firsthand in my State, to spur deployment. The Federal Gov- moting renewable energy in electricity in southwestern Minnesota, where ernment, in fact, has been complacent. production. I think Minnesota’s aggres- there are wind turbines coming up ev- They have been watching the opportu- sive standard is a good example, but I erywhere. They have even opened a bed nities go by. also think the bipartisan way in which and breakfast near Pipestone, MN, be- Now, this is not so of the States. I it was set should be a model for Fed- cause they are so excited about these know Senator SALAZAR borrowed my eral action. wind turbines. If you were looking for chart about an hour ago, but I like this The courage we are seeing in States a romantic weekend and time away chart because it shows the progress such as my own should be matched by from your State of Rhode Island, you that is going on across the country. the courage in Washington. We should could actually go down there and stay You can see it is not limited to one be prepared to act on a national level, overnight and wake up in the morning area. It is not limited. We have heard especially when the States and local and look at a wind turbine. That is the about what California has done and communities are showing us the way. package. how aggressive they are. I am always There is now an opportunity for the But the point is this: The people in telling the Senators from California it Federal Government to act, and this that area are so excited about the de- is great what you have done, but it is Energy bill has many good things in it. velopment and the potential manufac- important to talk about what is going I love the standards for appliances, the turing that is going on, that they want on in the rest of the country. standards for buildings. I like to call it people to come and see it. We also have You look at what is happening in my ‘‘building a fridge to the 21st century.’’ individual homeowners and school dis- own State of Minnesota: 27.4 percent But I also would like to see some even tricts that are trying to figure out how mandated renewable standards by 2025. bolder action. That bolder action they can put a wind turbine up so they We have what is happening in New comes in many forms, but one that is can bring that kind of homegrown re- Hampshire: A 23.8 standard by 2025. We most important to me is putting this newable energy into their places of have Maine, which actually has a renewable standard into law. business and into their homes. standard and goal, as opposed to a We have everything we need. We just A strong renewable energy standard standard, of 30 percent by 2000; Vir- need to act. We have the scientific is going to save us money, and it is ginia, 12 percent by 2022; We have New know-how in this country. In my State, going to cause this kind of investment. Jersey, which has been a leader in this we are so proud of the work that is It is going to open the door to a new area, at 22.5 percent by 2020. If you go going on at the University of Min- electricity industry that will bring all the way out to Montana, you see a nesota and the State colleges across thousands of jobs and billions of dollars 15-percent standard by 2015; if you go the State. It is going on everywhere. into our economy. up to Washington, 15 percent by 2020. If We have the fields to grow the energy Over the last 20 years, America’s re- these courageous States are willing to that will keep our Nation moving, and newable energy industry, and the wind do this with no direction from the Fed- we have the wind to propel our econ- industry in particular, has achieved eral Government, I think it is time for omy forward. The wind is at our back, significant technological advance- us to act. and it is time for us to move. It is time ments. The industries for solar and It was Louis Brandeis, the judge, who to act. The only thing that is holding wind and biomass are expanding at once in one of his opinions wrote about us back is complacency.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7616 CONGRESSIONAL RECORD — SENATE June 13, 2007 In my office in the lobby, I have a into turbines, and this produces the ing any new hydro development, it picture. It is a picture of someone hold- power. About 40 percent of the power in makes one wonder: How will they be ing a world in their hands. The words urban Alaska comes from projects such able to achieve the standards that have on it read: The angel shrugged, and she as these. They have zero environmental been set forth in a renewable portfolio placed the world in the palm of our impact. They do not affect the stream standard if we cannot count the hydro? hand. She said if we fail this time, it is flows. They do not affect the fish runs. I am concerned that we will move to- a failure of imagination. So I have to look at the two different ward a one-size-fits-all solution. It is We in the Senate in the next 2 weeks proposals and ask: How are we treating something we are wise to avoid; other- have the opportunity to show this hydro? How are we treating runs of the wise, we have electricity consumers in country and the world that we have the rivers, the lake taps? How is that in- many of the States that will be better imagination for a better world and we cluded in the proposals? I believe ig- off by not having a Federal mandate at have the imagination that we can start noring the potential for hydropower all but continuing under this patch- having our energy and our electricity where it can be done without emissions work arrangement of State renewable produced by the wind and the sun, that and without any other environmental portfolio standards that are already we have the imagination that we can impact is a mistake and a needless being formulated. For them, it may be have a better environment. mistake. better to stick with that patchwork This is the time to act, and I urge my The clean portfolio standard also al- program than a Federal approach. colleagues to support the 15-percent lows utilities to count not just the in- I have heard from the American Wind standard for renewable energy. cremental nuclear power and the power Power Association that the provision Mr. President, I yield the floor. from the next generation of nuclear, in this amendment that allows the Sec- The PRESIDING OFFICER. The Sen- but it also allows you to count the retary to certify other clean energy ator from Alaska. power saved by energy efficiency pro- sources to qualify in the future some- Ms. MURKOWSKI. Mr. President, I grams. This is an area we all want to how creates a loophole that will harm appreciate the opportunity to hear the encourage. We want to encourage en- renewable energy progress. But given the standards that are contained in the comments of my friend and colleague ergy conservation and efficiency pro- amendment, I don’t believe this is a from Minnesota. She speaks of wind in grams. This, I think we will all agree, problem. All the provision does is allow her State. It is fair to say that in cer- is a justifiable addition to the bill. tain parts of my fair State of Alaska, Some will argue that the amendment new technology to be classified as re- we, too, have incredible winds that waters down Congress’s commitment newable to benefit from the incentives this provision creates without waiting sometimes we feel could power the en- to push renewable energy. I am just for Congress to act, which we all know tire Nation with the amount of wind not buying into that argument. That is can be a very lengthy process and one energy we have. In fact, sometimes the not the case. By increasing the stand- we really don’t even want to count how winds are too strong and we cannot ard to 20 percent from the 15 percent long that can be. keep wind generation units up because starting in the year 2020, we have offset As a strong supporter of renewables the force of the winds is that intense. any reduction in effort, but we have and a really strong supporter of wind But I do recognize that all States are made the provisions more fair to all energy, I am a huge proponent of wind not created equal in terms of their the States. As I mentioned, all States energy. I am the sponsor in this bill of ability to produce forms of renewable are not equal in their ability to a grant program to have the Federal energy, such as wind. produce renewable energy. Government help pay up to 50 percent I am a very strong supporter of re- All State utilities can sponsor energy of the cost of renewable projects to newable energy, really all forms of re- efficiency legislation. Most States are help get the renewables over the hump newable energy. Whether it is geo- able to move toward nuclear power. of the higher construction costs. I want thermal, ocean energy, wind, solar, Most States have some access to hy- to work to encourage a rapid expansion biofuels, all aspects of renewable are so dropower. Most States can benefit from of renewables. We need to increase re- important. I want to explain this after- landfill gases or from some forms of newable use in this country tenfold. We noon why I am supporting the clean biomass. And all States can utilize fuel are currently at 2 percent. We need to portfolio standard over the renewable cells to reach a clean energy standard. get to 20 percent, and this is what is portfolio standard and actually think But not all States have consistent wind called for in the clean portfolio stand- that the clean standard is the best for patterns, have cloudless energy poten- ard. But I think we need to be careful the environment and for the public. tial or good geothermal or ocean op- about narrowing the list of tech- Both of these proposals will encour- tions. nologies so that we in the Government, age States to promote the most forms I look at the State of Alaska, with we in the Congress are not picking the possible of renewable energies, whether our geography and with our consider- winners and losers; that we allow wind they be solar, wind, geothermal, ocean, able landmass, considerable coastline, to compete with ocean energy, with biomass. All are covered equally under and say we are blessed with incredible geothermal energy; that we allow hy- both of the proposals. resources when it comes to renewable dropower to compete with the advan- For my purposes and where I am resources. We have incredible geo- tages of energy efficiency programs. really honing in is in the area of hydro- thermal potential. We have strings of We have to remember that if the Fed- power, and this is one key area where volcanoes up the Aleutian chain and eral Government does not generously the different proposals part company. even in our south central area. With a finance renewable power projects, con- Under the renewable portfolio stand- coastline the size we have in Alaska, sumers will be paying the bills for their ard, new hydropower does not count to- we have potential from ocean energy construction through higher power ward meeting the production mandate, that is unequaled anywhere else in the rates. We have a fine line to walk be- only incremental power. The addition United States. We have, as I men- tween promoting renewables and rais- of turbines to existing facilities can tioned, incredible wind potential, and ing the cost of electricity in some parts count. we are seeing that particularly in our of this country too quickly and too Under the clean portfolio standard, coastal communities where we are able high. That program, if you will, will new hydropower, not the power from to put wind-generating units, offset- harm low-income families and the com- dams that span the rivers, but all other ting the cost of diesel, which is what petitiveness of the economy. forms of new hydropower, such as currently powers far too many of our So while both proposals are admi- power from small hydro projects and communities in the State of Alaska. rable in very many respects—and I from lake taps, can count toward that My point is, we are blessed in Alaska commend the chairman of the Energy renewable requirement. That is a very with renewable energy options. Those Committee for his hard work in this important difference. in perhaps the southeastern part of the area—I do believe the clean portfolio In my State of Alaska, we tap the United States have already pointed out standard overall does a better job and mountain lakes, those that have few some of the very real concerns they is more fair to States that have dif- fish. There is a hole that is literally have with a renewable standard. In the ferent abilities to meet our renewable drilled in the bottom. It runs the water Pacific Northwest, if we are not count- portfolio standard.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7617 I urge my colleagues to study this, happen to have electricity trans- technology has advanced by leaps and study it very carefully, and have an mission lines located where the renew- bounds, not because we ordered indus- open mind when they cast their vote on able resources are. The States, I be- try to generate more renewable power these provisions. lieve, know best on how to promote but because we gave incentives to gen- Mr. President, I yield the floor. and manage the renewable resources erate new renewables. The Bingaman Mr. BINGAMAN. Mr. President, I unique to their States without another approach turns that on its head. Under suggest the absence of a quorum. Federal mandate. the Bingaman amendment, renewable The PRESIDING OFFICER. The We had this discussion this morning producers will gravitate to low cost, clerk will call the roll. when I had my refinery amendment up. existing renewable sources. They will The assistant legislative clerk pro- I said there is this mentality in Wash- have no incentive to innovate and ceeded to call the roll. ington that no decision is a good deci- bring their costs down. The power gen- Mr. INHOFE. Mr. President, I ask sion unless that decision is made in erated will be sold almost regardless of unanimous consent the order for the Washington, DC. I think that is what cost. quorum call be rescinded. we are looking at here. This is an issue The Bingaman amendment is nothing The PRESIDING OFFICER. Without that should be left to the States, not more than the Government deciding objection, it is so ordered. enacted in an RPS. The decision should which type of energy is politically in Mr. INHOFE. Mr. President, I have not be preempted, especially not when favor and which type is politically out made it a practice for the last—I don’t the cost is $6 billion. of favor. Right now, the wind industry know how long it has been now, 12-plus I know a lot of people are thinking, is the big political winner. It is lower years in the Senate—that any time I in terms of the things we talk about in cost than most renewables, cur- see a major tax increase coming along, here in Washington, DC, $6 billion is rently gobbles up 95 percent of avail- at least I want to voice opposition, to not an astronomical amount. But take able tax credit, and has the largest get on record against it. That is what a State with a population of the State lobby for the Bingaman amendment. we are talking about right now with of Oklahoma. A $6 billion tax increase Wind-generated power has significant the renewable portfolio standard that is huge, particularly when you do not environmental problems we need to ad- is before us. get anything for it. I support development of renewable I hope we will oppose the amendment dress. First, wind turbines take up lots of space to generate any significant energy resources, as do the citizens of of Senator BINGAMAN on renewable my State of Oklahoma. In fact, in 2006, portfolio standards. amount of energy, making them poor Oklahoma was ranked sixth in the Na- Mr. KYL. Mr. President, I rise today for urban environments and problem- tion for wind energy capacity, sur- in opposition to the Bingaman amend- atic for landscape viewsheds, especially passed only by Texas, Minnesota, Iowa, ment relating to the renewable port- near our Nation’s national parks. They California, and Washington State. folio mandate. The Bingaman amend- are also dangerous for wildlife. The Na- Those are real turbines lighting over ment would impose a 15-percent port- tional Academy of Sciences stated in a 150,000 homes in Oklahoma without an folio requirement for a limited number report released this year that bats are RPS. of so-called renewables by 2030. I op- at considerable risk in the South- Let me emphasize, Oklahomans are pose this amendment as I have opposed western United States and elsewhere, developing wind energy without a one- such proposals in the past because it is where reliance on wind power has been size-fits-all Federal mandate known as an egregious example of Federal com- growing. The wind-power turbines gen- an RPS, renewable portfolio standard. mand and control of the marketplace. erate sounds and, possibly, electro- Quite a number of years ago I spent a Renewables have been and will con- magnetic fields that lure the acous- number of years as mayor of a major tinue to be an important part of our tically sensitive creatures into the American city. Its problems were not energy mix. Hydropower, solar, geo- spinning blades. In addition, local bird the ones you would think, not crime in thermal, wind, municipal solid waste populations are also at risk. NAS also the streets, not prostitution. It was all make substantial contributions to stated that local bird populations, es- Federal mandates that were not fund- our energy needs. These and the other pecially peregrine falcons and other ed. This is exactly what we are looking power types—nuclear, clean coal, and raptors that are attracted to windy at here. natural gas—succeed in the market be- areas where the generators are likely Under this amendment, Oklahomans cause they are cost-effective, not be- to exist, are at risk and called for addi- would pay an additional $6 billion for cause the Federal Government has re- tional study. Raptors ‘‘are lower in their electricity. You might ask where quired them to be bought. abundance than many other bird spe- would that money go? It would go to Congress has long supported renew- cies, have symbolic and emotional perhaps the Federal Government to able energy. That is one thing—Federal value to many Americans, and are pro- spend as it pleases, or it would go to mandates are another. Fundamentally, tected by federal and state laws.’’ Be- other States that are lucky enough to I oppose Federal command and control sides these environmental impacts that have the particular energy sources that of the marketplace. I have no doubt must be looked at, the fact is, wind environmental groups decide today that any requirement that a particular just doesn’t blow enough in most parts they want. percentage of electricity generation by of the country for this to be a viable How does this promote clean energy renewables can be met. During World source of energy for utilities across the in Oklahoma? It does not. The amend- War II, through a tremendous expendi- country to rely on. ment cherry-picks technologies that ture of money and effort, we developed I believe the kind of energy utilities have to be blessed by environmental nuclear weapons when no one thought use to generate electricity should be groups but ignores the real clean en- it was possible. During the sixties, no based on the free market and consumer ergy benefits of nuclear power, hydro one thought it was possible to send a choice. If consumers want to buy the power, clean coal, and energy effi- man to the Moon, but we did. A renew- kind of renewable energy mandated by ciency. able portfolio mandate of any percent, the Bingaman amendment, they are A kilowatt saved is a kilowatt be it 15 percent as proposed here or free to do so. Likewise, if they want to earned. You can’t get cleaner than en- even 50 percent, is achievable—whether spend their money on something else, ergy efficiency, but it doesn’t comply it be through actual generation of en- they should be free to do that too. Con- with the amendment. ergy or through the purchase of credits sumers are better able to decide what The RPS amendment is nothing more from the Federal Government. But at is in their own interest than govern- than a tax increase. It is a tax on what cost? What cost in terms of elec- ment. Why should a family of four States that lack enough natural re- tricity rates to be paid by American struggling to meet its monthly bills, to sources to meet the 15-percent man- consumers, estimated at over $100 bil- educate the kids, or help elderly par- date. It is a tax on States that do not lion by 2030, at what cost in terms of ents be required—due to Federal polit- harness the particular renewable tech- stifling technological advancement ical correctness—to purchase high- nologies enshrined in this amendment, into other alternative sources of en- priced energy instead of meeting fam- and it is a tax on States that do not ergy? Over the past 20 years, renewable ily obligations?

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7618 CONGRESSIONAL RECORD — SENATE June 13, 2007 Over 20 States have already adopted to meet their energy needs and allow this is too complicated. This is the big their own renewable standards, includ- the free market to work. Thus, I will hand of Government. It sounds like ing my home State of Arizona. They vote no on the Bingaman amendment. more taxes. It is going to force some each did so, presumably, because those The PRESIDING OFFICER. The Sen- change, pick winners and losers, let’s States decided it was in their citizens’ ator from Illinois. put this off to another day. Let’s get best interests. I have long believed that Mr. DURBIN. Mr. President, I rise back to this next year or the year decisions affecting people’s lives and today in support of the renewable port- after. livelihoods should be made at levels of folio standard offered by Senator JEFF I have heard that song before, over government that are closest to the peo- BINGAMAN of New Mexico. The phrase and over again. I do not believe the ple, not by bureaucrats in Washington. ‘‘renewable portfolio standard’’ is a American people sent us to Washington Let’s look at the problems with a question most of us would fail on the to put off addressing the problems Federal renewable portfolio mandate. final exam. What does it mean? To try which we face in this Nation and this First, as I said before, it picks certain to put it in the most simple terms, world today. We have to tackle them. politically favored renewable energy what we are trying to achieve here is Some of them are controversial. Some types for special treatment, ignoring the generation of electricity through of them may not be popular back what States have already decided to do means which meet the needs of our home. But we are sent here to make a on their own. The supporters of the families, our businesses, and our econ- decision. Even if the decision is uncom- amendment will tell you that is not omy, but create fewer environmental fortable for some, we have to under- the case and that State programs can problems. That is it—renewable fuel. stand it is important. continue, but that is only true if the By doing this, we are going to end up This renewable portfolio standard—a State picked the same favorites this with an environment which is kinder mouthful, if you will—requires retail amendment does. For instance, what and cleaner for future generations. electric utilities to include 15 percent about Pennsylvania? Pennsylvania Let’s be very honest about this. renewable energy in their generation portfolios by the year 2020. We give a took a look at its energy availability Some of the people who oppose this re- lot of flexibility to the utilities about and determined that coal to liquids newable portfolio standard do not be- how to reach this goal. They can gen- made sense given its vast coal reserves. lieve we have an environmental prob- erate this renewable electricity them- So coal to liquids counts toward meet- lem. They do not believe global warm- selves—build wind farms or solar facili- ing its State RPS. Under the Bingaman ing exists. They do not believe climate ties. Some people say maybe these change is an issue. They do not believe amendment, Pennsylvania would not wind farms won’t work. I did not know pollution is a problem. They can’t un- be able to count this source toward the much about wind farms myself. What I derstand why we are trying to change Federal mandate, in effect gutting its read suggested my home State of Illi- the way we generate electricity. If that State RPS program and increasing the nois was just OK when it came to wind is your point of view, I can understand costs to consumers. energy. But now as I move around my This example brings me to a basic why you would oppose the amendment State, I see big changes. In the Bloom- problem with a Federal renewable of Senator BINGAMAN, because it seems ington-Normal area, central Illinois, mandate. Some regions of the country like much ado about nothing. Why the Twin Groves project, they are in are blessed with abundant renewable would we be spending all this time, all the process of building 240 wind tur- resources, while others are not. The re- this effort, all this debate, and all this bines, huge turbines. newable mandate will create stupen- force in changing the way we generate Sadly, they are made in Europe. I dous transfers of wealth from renew- electricity if everything is fine the way hope the day comes soon when more able-poor States to renewable-rich it is? are made in the United States. But States. This means that consumers in I am not one of those persons. I be- they are coming here to generate, with New York City will send their hard- lieve we do face some serious environ- the wind blowing across the cornfields, earned dollars to wind generators in mental challenges in the world today electricity. It is a $700 million invest- Minnesota. Think about it. Consumers which, if they go unresolved and unan- ment. It will generate enough elec- in New York City will pay for renew- swered, will change the Earth on which tricity from these wind turbines spread able electricity they don’t even get. we live. In fact, I think the process is out among the cornfields to take care That is not fair. If the purpose of the underway. I do not think it is positive. of the needs of 120,000 families in cen- renewable mandate is to lessen our de- I think the evidence is abundant that tral Illinois. At the end of the day, pendence on foreign energy, there are as we become more industrial in the there will not be pollution added to the better ways: nuclear power, clean coal, world we live in, we have generated atmosphere. It will be natural wind and oil and gas from regions of the more smoke, more pollution, more power turning the turbines, generating United States that have been put off greenhouse gases, and it is changing the electricity for the families and limits. the world in which we live. businesses in that area. That is renew- Let’s face it, we have to have reliable Some people will say that is what we able electricity. sources of energy to meet the ever in- expect to hear from the environmental- When it comes to solar power, I guess creasing consumer demand for elec- ists, those extremists, those tree some people think that is a vestige of tricity. However, the primary sources huggers. They have been singing this some musings back in the 1950s and of energy that will be necessary to song ever since Earth Day was first 1960s, but it is not. Solar energy today meet this mandate, wind and solar, are created. But you know what is hap- is growing in its usage. You see it all intermittent sources. What happens pening? There are some hard-headed over the United States, little solar pan- when the wind doesn’t blow or the Sun businessmen coming to the same con- els that are now collecting enough en- doesn’t shine? As we learned in eco- clusion. When I visit a major insurance ergy to do little jobs. Then you take a nomics 101, there is no such thing as a company in my home State of Illinois look at the world scene and look at a free lunch; consumers will pay. They which has announced it is no longer country such as Germany, not a coun- will pay for the renewable energy and going to write property insurance on try you might single out as being a they will pay for the backup capacity Gulf Coast States for fear of the vio- leader when it comes to solar energy. that will come from what we know are lent storms that are causing damage, it As a country, I doubt it has much more reliable sources of energy—nuclear, tells me this has gone beyond the sunshine than parts of the United coal and natural gas—to keep the musings of some people in the green States. But 20 years ago the Germans lights on. movement. It now has become an eco- made a commitment to solar energy Mr. President, let me return to my nomic reality, that the world is chang- and now that commitment is paying fundamental concern about the renew- ing and in some respects not for the off. By guaranteeing return on invest- able mandate. The Bingaman amend- better. ment, more and more solar panels are ment gives the Federal Government If we know that to be true, the obvi- being installed and they are generating the power to micromanage the market- ous question is what will we do about more electrical power from the force place with a one-size-fits-all mandate; I it? Listen to the debate on the floor, and power of the Sun. We can do the want States to determine the best mix Senator after Senator coming in saying same.

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7619 How do you reach that goal, for more Paw Paw, IL, that really was kind of cent by 2013; New York, 24 percent by solar panels? You create incentives. disappearing on us, with a little cafe or 2013; Colorado, 16 percent by 2020. How do you create these incentives? two and a little gas station, all of a By diversifying and decentralizing The Bingaman amendment. The Binga- sudden people are paying attention. our energy infrastructure, increased re- man amendment says if you are an Why? Because they have about 20 wind liance on renewables provides environ- electrical power generating company, turbines right next to Paw Paw, IL. mental, fuel diversity, national secu- we want 15 percent of the power you I stopped my car and went over to rity, and economic development bene- generate by the year 2020 to come from the farmer who lives in the shadow of fits for everybody. Increasing renew- sources such as wind and solar panels. these wind turbines. This man had a able energy will reduce the risks to the What is that going to do? It is going smile from ear to ear. He is getting a economy posed by an overreliance on a to change the nature of the solar power monthly lease payment for them to put single source of new power supply. industry. There will be more compa- the wind turbines on his property, and Additionally, the 15-percent national nies, there will be more compensation, he has planted corn right next to these standard will reduce carbon dioxide there will be more research, there will wind turbines. He is getting the best of emissions by nearly 200 million metric be more efficiency. When it is done, we both worlds—the lease payment and tons per year by 2020—a reduction of 7 will end up with the electricity we need the production from his own land. He percent below the business-as-usual to lead the good lives we have without couldn’t be prouder. level. That is the equivalent—the creating a mess in this atmosphere How did they end up putting those Bingaman amendment is the equiva- that changes the climate and creates wind turbines in that tiny town? I can lent of taking 32 million cars off the pollution, creates problems such as tell you why they put them there. Be- road. asthma and lung disease. We will be cause the mayor of the city of Chicago, Furthermore, the Energy Informa- moving in the right direction instead about 50 to 60 miles away, said to the tion Administration study found that a of the wrong direction. utility company, the electric company 20-percent renewable energy standard There will always be voices opposing supplying electricity to the city gov- would reduce the cost to consumers of this kind of change. It is too much for ernment, that they required—the city meeting four pollutant reductions from some people. It is a vision of the world contract required a percentage of re- powerplants by $4.5 billion in 2010 and they cannot imagine. It is addressing a newable sources of electricity. So this $31 billion in 2020, compared to meeting problem which many of them do not electric power company decided they the emission reductions without a re- even acknowledge and that is why you needed to build some wind turbines. newable standard. run into resistance. They built them, put them in Paw I support this amendment. I believe Some say it is a great idea, but Paw, IL. They are now feeding elec- that diversifying our electricity port- America is not up to this challenge; we tricity into the grid instead of burning folio and encouraging the development can’t generate the technology to meet coal or some other pollutant. They are of clean, renewable resources provides this challenge. Come on. I disagree. trying to find a way to generate elec- economic and environmental benefits There has not been a time in our his- tricity and not make the environ- to our country. tory when this Nation has been chal- mental situation worse. It works. It is I would say to those who are engaged lenged to achieve anything, from a in smalltown America. It is in rural in this debate: Do not bemoan global man on the Moon to taming the atom, warming, do not cry about climate that we have not risen to the chal- America, and it pays off. We have over 100 megawatts of wind change, do not say you really are con- lenge. We can do it here and we must energy in Illinois already. A conserv- cerned about pollution if you cannot do it here. I believe in the creative ge- ative estimate shows these turbines accept the challenge of the Bingaman nius of this American system of gov- generate enough electricity currently amendment. In the next 13 years, we ernment and this economy. If you believe in it, a 15-percent re- to power 22,500 homes; another 300 can meet this goal. It is a challenge to newable portfolio standard is not a leap megawatts under construction, and America which we can meet and ex- of faith. Of course, if the electric utili- that would generate another 1,200 ceed. I am confident we will. In the ties do not have their own generating megawatts of electricity. If all of those process, we will find cleaner ways to capacity through solar panels or wind projects are completed, Illinois will be generate electricity. We will create power or other sources, they have an generating enough electricity to power less pollution for the people who live in option under this to purchase credits over 370,000 homes from this wind en- this country. We will end up with new from other utilities that do. ergy. technologies, new business opportuni- This is a market-based mechanism Now, with a 15-percent renewable ties that demonstrate the strength of that Senator BINGAMAN’s amendment portfolio standard, America would in- this great country in which we live. We addresses. It will drive competition crease its total homegrown, clean, re- can meet this goal. We should not into the renewable market without newable power capacity 41⁄2 times the shrink away from it. picking winners. It is basically going present level. Senator BINGAMAN’s I thank the Senator from New Mex- to say: We have some goals we have to amendment gives us 13 years to reach ico for his leadership in bringing this meet; now who can do those best? that goal. It is not unrealistic. In fact, amendment. Using the Energy Information Admin- I think one might argue we can do bet- I yield the floor. istration’s data, a national 15-percent ter. I hope we will. The PRESIDING OFFICER (Mr. renewable portfolio standard would Some States have already adopted OBAMA). The Senator from New Mexico. save American consumers $16 billion on standards far higher than what Senator Mr. DOMENICI. Mr. President, I their electric and natural gas bills by BINGAMAN is suggesting as a national don’t know how much longer we are the year 2030; commercial customers standard. With the abundance of re- going to be here this evening. I have would save $8 billion; industrial, $5 bil- newable energy resources—the sun, the not been able to confer with Senator lion; residential, $3.3 billion. wind, the Earth itself—the technical BINGAMAN on the timing. But I do not A renewable portfolio standard will potential of major renewable tech- think we are going to be here very late. create jobs and income in rural areas. I nologies could actually provide more I am not sure—I mean, I am sure we know this for a fact; that is where I than five times the electricity America are not going to vote on either amend- come from. I come from downstate Illi- needs. ment this evening. Nonetheless, there nois, I have seen these wind farms, and There are limits of how much this po- are a couple of Senators—at least one they work. Each large-scale wind tur- tential can be used because of com- standing there—who have not talked bine that goes on line generates $1.5 peting land uses and costs, but there is today and who want to. million in economic activity and pro- more than enough to supply 15 percent, I am going talk for a little bit. First, vides about $5,000 in lease payments maybe even 20 percent. I want to say to everybody—including per year for 20 years or more to a farm- Twenty-one States and the District the previous immediate speaker who er, rancher, or landowner. of Colombia have already established a spoke about what kind of people we are If you drive south of Rockford, IL, renewable electricity standard. Illi- who think we have something better and go through a little town called nois, for instance, has a goal of 8 per- than Senator BINGAMAN—I want to say

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7620 CONGRESSIONAL RECORD — SENATE June 13, 2007 that there is no animus between Sen- fundamental way to get things going from nuclear power all the way down ator BINGAMAN and PETE DOMENICI. We right is for every State to march to the to solar, bio, and everything else. They are friends, and it is almost difficult tune of getting to 15 percent of solar all got the same. We had already begun when people are saying: You do so energy in their base. I am not sure that funding wind power. Again, I say to the many things together; how can you is the best thing for the United States. nuclear industry, but for the Congress come up on opposite sides of this? Well, I think maybe when it was dreamt up, of the United States, the truth is, there I just studied it as best I could, and I nobody thought there were any other would be no wind industry, because came up with what I thought was a bet- alternatives. But there are, and cer- without the tax credits we gave to ter idea. We have to do that. That is tainly we are making a mistake in say- make wind energy work, there would what we are elected for. New Mexicans ing it is going to be the language of the be no wind energy except in a few ought to be wondering what is cooking, Bingaman bill or nothing else when we places. I am not saying that in any way but they also ought to know that he already see that means wind for the negative. I am for it. I don’t know how has an idea and I have a different idea next 20 years or more. many more years we will have to give built on it, and that is all there is to it. What I tried to say in mine was them this tax credit to push them over One or the other or neither will get maybe there is something good about the hump, but I am going to do that be- adopted, and we will have a good ex- pushing States to change. But I pro- cause I believe they ought to move change here on the floor to see what is vided alternatives for diversification. ahead. We are learning both sides of I say to my friend from Montana, I really happening. the wind energy delivery system. We I do want to say that anybody who do not know where you stand on a nu- clear powerplant. If you have never had are beginning to see some negative as- comes to the floor and talks about how pects to it. It was all positive at one much richer we are going to get by one in your State, you are not going to get one because they are building them time. Some people are reporting nega- having a plan like Senator BINGAMAN’s, right where they were. So States that tive ones. Out in the country where we the mandate for each State—I have not used to raise cattle, certainly anybody seen any estimate of the cost to the had them are going to get nuclear pow- erplants within the next 10 years, who leases their land is delighted. They people of either Senator BINGAMAN’s many of them right where the existing make a lot more money out of wind approach or mine. I have seen one of powerplants are. All the Senator from turbines than they do trying to graze Senator BINGAMAN’s plans—two of New Mexico, the senior Senator, said cattle. There is no doubt about that. them, and none of them say you are was that if that is done during the life- Some of those cattlemen are extremely going to make money; both of them time of this program and you put in a happy because they don’t look like the say it is going to cost a lot of money to new nuclear powerplant, you ought to old windmills. They are much dif- the taxpayers. One says a lot more get credit for that. And the only way I ferent. But they pay well, so they are than the other. So I guess they really could think of was to call my portfolio glad. They joined up with wind energy, don’t know. EIA recently studied the the clean energy portfolio. That is those who are lobbying for them. They 15-percent RPS mandate and found what is it. And when you look at it got all the property owners who are that it would cost $21 billion. But there that way—and I added to the avail- getting paid. They joined them. That is was another one that was already done ability of what is allowed, I added nu- good. I don’t know who is lobbying for before that by Global Energy Deci- clear and I added some other things the rest of the kinds of energy we want sions, and they said the cumulative that I truly believe we should pursue to put in so we have diversity. cost to consumers would represent $175 with vigor, and I raised the ceiling to All this is is a vote to distinguish the billion over the 20-year life. But in 20 instead of 15. Now, when you look at two. If you want diversity of clean en- both cases, they said it was going to it, you get a chance of one or the other. ergy, vote for Domenici. If you want to cost money. The distinguished Senator, my col- be tied rigidly by a Federal statute to So I don’t think anybody is going to league from New Mexico, thought it what is almost all wind, vote for Binga- get all excited about a statement down was kind of unexpected that this bill man. If you want to vote for letting here on the floor that, among the many had an opt-out and seemed to make of those who have already met their goal things, having a mandate that every it as if that was something very bad. opt out if they want, vote for Domen- State be the same, have 15 percent, no- Look, we are open and sincere about ici. If you want to say they have to body is going to get excited and stand our bill having an opt-out. When a stay in, somebody ought to tell us all up and jump here on the floor of the State meets the goal, we see no reason why and how long they should stay in, Senate with the idea that this is a good for them to stay in. We think they but if they are going to have to stay in way for each State to make money. It ought to be able to get out. There is and be rigidly construed as to what is going to cost them money. It may be nothing that is naturally ideological or counts, then obviously, you have to a great idea, and it may be worth it. philosophical about it; it just seems vote for the Bingaman amendment. But I am here tonight to suggest— there is no reason to keep them in. We We will have more discussion because and I also want to say that the last have seen no good suggested from keep- everybody is getting well informed and speaker on the Democratic side, the ing them in, and so we think when they asking questions. I don’t know what is Senator from Illinois, spoke also about get through and meet their goal, they going to happen immediately after some of us as if we do not believe in ought to be able, if they want to, to get this. I assume the distinguished Sen- wind energy. Well, let me say, there out. If, in fact, they are already tied ator from Montana will speak. He was are not too many Senators who came together because of electric lines and next. I will be leaving and apologize in to the party here in Washington in the like, they will not destroy all of advance that I would not get to hear helping wind energy. There are not too that. There will still be relationships of his speech about this bill. Maybe some- many who helped them more or came those types which were built, and the day we can meet back up there in Mon- to help them sooner than this Senator. ones that are needed will stay on. They tana on the campaign trail and he can The Senate and the House have been will be there for a long time. talk about Montana and I can talk helping solar energy to a fare-thee- Let me say in closing that one from about I don’t know what. He can tell well. We will continue to do that. But the other side of the aisle need not talk me what to talk about. But it is good I can say to the wind industry that I about those on this side of the aisle, in- to be here with him on the floor. have helped you all the way through, cluding this Senator, as if we don’t un- I yield the floor. and now I note that you are out cam- derstand what wind energy is and we The PRESIDING OFFICER. The Sen- paigning as hard as you can for this don’t have enough dreams about solar ator from Montana. Bingaman proposal, this proposal by energy. We understand both of them. Mr. TESTER. Mr. President, I thank Senator BINGAMAN, this mandate. We have funded both of them. We have the Senator for the kind words. I ap- When you look at it and think about it, put the identical tax benefit on both, preciate that. I look forward to having it is a mandate that we use more and the same as we have put on everything him in ‘‘big sky’’ country anytime he more wind energy. That is what it is. else. wants. Now, I am not at all sure we are right Last year when we did them all, we I rise in strong support of the Binga- in assuming that across this land the gave them all a 27.5-percent tax credit, man amendment. Change is difficult, if

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7621 you are young, if you are old, and of- the climate change issue. It diversifies wealthy, are finding ways of getting tentimes change is difficult in politics. our production as far as where the en- around what was thought to be a But what we are talking about is a na- ergy is produced. It diversifies the en- bright-light idea in 1969. It is hitting tional energy policy, a long-term na- ergy portfolio which is critically im- maybe a few hundred people, finding tional energy policy that people and in- portant. that superrich class not even paying vestors and consumers can depend If the Members of this body want to the tax. So it isn’t serving the purpose upon. Within this national energy pol- help move this country forward, help it was intended to serve, and it will hit icy, there is an amendment called the make this country energy independent middle-class Americans who were Bingaman amendment that deals with and address the global warming issue, I never intended to be hit by it by 23 mil- the renewable energy standard. recommend a ‘‘yes’’ vote on the Binga- lion this year. Interestingly enough, back in 2005, in man amendment. One reason I have previously given a former life when I was in the Mon- I yield the floor. for permanent repeal is it may be dif- tana Senate, I carried a bill for a re- The PRESIDING OFFICER. The Sen- ficult for Congress to revisit the alter- newable energy standard in Montana ator from New Mexico. native minimum tax on a temporary that increased the renewable energy Mr. BINGAMAN. I yield to the Sen- basis every year, as we have for each of portfolio by 15 percent by 2015. Let me ator from Iowa for whatever time he the last 6 years. From January 1 of this tell you what happened there. The im- wishes. year until now, when the second quar- portant parts of this bill were 8 percent The PRESIDING OFFICER. The Sen- terly payment is going to be made, by 2008 renewable energy in the port- ator from Iowa. proves me right, because nothing has folio, 10 percent by 2010, and 15 percent Mr. GRASSLEY. Mr. President, I ask been done. So the new Congress has yet by 2015. That was the bill that we car- unanimous consent to address the Sen- to undertake any meaningful action on ried in the Montana legislature. What ate as in morning business. the alternative minimum tax. Several happened was, the first year they met The PRESIDING OFFICER. Without proposals have been tossed around by the 8 percent. They will meet the 10 objection, it is so ordered. the other body, meaning the House of percent by next year, 2 years ahead of ALTERNATIVE MINIMUM TAX Representatives. I have discussed a few schedule. It is predicted by 2011, the Mr. GRASSLEY. Mr. President, once of them in my earlier speeches. I gen- independent-owned utilities will meet again, as a leader of our party on the erally find these proposals lacking but the 15-percent threshold, 4 years early. Finance Committee, I come to the completely agree with my colleagues The fact is, this amendment is not floor to discuss one of the important that something needs to be done, at cutting edge. This amendment is what tax issues that must come before Con- least I seem to agree. Despite assur- is right for the country, renewable en- gress. That is the alternative minimum ances that the alternative minimum ergy. Everybody talks about wind. tax. I am sure many have noticed that relief is an important issue, nothing Wind is an important part of renewable the alternative minimum tax is fre- has actually been put forward as a seri- energy. But geothermal is also another quently the subject of my many ous legislative solution. This chart I am going to put up re- one. We haven’t even tapped into the speeches. They may be wondering how flects how the alternative minimum geothermal resources we have, and long I intend to keep talking about it. tax has been handled by this Congress they are massive. That is a renewable The simple answer is I intend to keep so far. It is kind of a smoke-and-mir- energy. Biomass, small bore timber, talking about it—meaning the alter- rors example that I use because we wood waste products, crop byproducts native minimum tax—until this Con- gress actually takes some action. In- have had numerous proposals talked to help power generators, that is re- about, but that is all, just talk. An stead of taking action, this Congress newable energy. Landfill gas is another academic discussion is not in any way has done absolutely nothing. The prob- one we haven’t tapped into, a renew- a serious substitute for real action this lem continues to get worse for millions able energy. Electricity created by Congress ought to take, as tomorrow of Americans who will be caught by the solar, by the Sun, is a renewable en- people making their quarterly pay- alternative minimum tax and are now ergy. Biofuels such as camelina, such ments will attest to. as biodiesel, powering generators, that being caught. It is this ‘‘now being I have also come to realize the best is renewable energy. caught’’ that I wish to emphasize, be- way to learn about new proposals that Make no mistake about it, when we cause when I speak about those now deal with the alternative minimum tax talk about renewable energy, it is not being caught by this alternative min- is not to check for the new legislation just wind—although wind is an impor- imum tax, I am referring to those fami- in the CONGRESSIONAL RECORD but to tant factor—it is many different ave- lies who make estimated tax payments check the daily newspaper. In the nues we can go down that suit some and who will be making their second course of reading the Washington Post parts of the country better than others. payment for this quarter this Friday. last Friday, I came across another trial By the way, back in 2005, when we were Last year, 2006, 4 million families balloon—I emphasize ‘‘trial balloon’’— dead last in wind energy production, were hit by the alternative minimum for a new idea about the alternative that little renewable portfolio standard tax. This was 4 million too many. Of minimum tax that was printed in the bill we passed took Montana from 50th course, it is considerably better than business section of the newspaper. A to 15th in the Nation in renewable en- what we know for the year we are in lot of people were out of town on Fri- ergy production. We see transmission right now, when 23 million Americans, day, so I ask unanimous consent that lines being built in the State, some- mostly middle class, will be hit by the the article entitled ‘‘Democrats Seek thing that wasn’t done before. We saw alternative minimum tax. The reason Formula to Blunt Alternative Min- a whole lot of wind generators go up in we are experiencing this large increase imum Tax’’ be printed in the RECORD. rural Montana, where jobs are most this year is that in each of the last 6 There being no objection, the mate- needed, where economic development is years, Congress has passed legislation rial was ordered to be printed in the most needed, where we develop a tax that temporarily increased the amount RECORD, as follows: base for our schools and counties in of income exempt from the alternative [From the Washington Post, June 8, 2007] those areas that have seen depopula- minimum tax. These temporary exemp- DEMOCRATS SEEK FORMULA TO BLUNT AMT; tion, giving these areas hope. tion increases have prevented millions ONE PLAN WOULD IMPOSE SURTAX OF 4.3% What we are talking about is a long- of middle-class Americans from falling ON RICHEST HOUSEHOLDS term policy that will invest in Amer- prey to the alternative minimum tax (By Lori Montgomery) ica’s consumers and this country. In until now. While I have always fought House Democrats looking to spare millions the process, it will result in a 50-per- for these temporary exemptions, I be- of middle-class families from the expensive cent increase in wind generation, a 300- lieve the alternative minimum tax bite of the alternative minimum tax are con- percent increase in biomass generation, ought to be permanently repealed be- sidering adding a surcharge of 4 percent or a 500-percent increase in solar power, cause it was never meant to hit the more to the tax bills of the nation’s wealthi- est households. and it will reduce emissions by some middle class—and it is hitting the mid- Under one version of the proposal, about 1 222 million tons per year by 2030. It is dle class—and because the class of peo- million families would be hit with a 4.3 per- cheap. It is clean. It is a solution for ple it was intended to hit, the super- cent surtax on income over $500,000, which

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7622 CONGRESSIONAL RECORD — SENATE June 13, 2007 would raise enough money to permit Con- bills of many current AMT payers. But they lies earning between $250,000 and gress to abolish the alternative minimum face numerous obstacles. In the Senate, Fi- $500,000 yearly as part of this option. tax for millions of households earning less nance Committee Chairman Max Baucus (D– Now, I am not sure how individuals than $250,000 a year, according to Democratic Mont.) favors AMT repeal but considers it would be treated in this plan. aides and others familiar with the plan. too ambitious for this year. Baucus has said Interestingly, immediately after the Rep. Richard E. Neal (D–Mass.), chairman another year-long patch is more likely. of the House subcommittee with primary re- In the House, some Democrats argue that insistence that this option enjoys a sponsibility for the AMT, said that option more time is needed to explain the issue to great deal of support, the article notes would also lower AMT bills for families mak- the public. The vast majority of households that details of the plan have yet to be ing $250,000 to $500,000. And it would pay for have yet to pay the AMT and may not fully released. In the tax world, the devil, of reductions under the regular income tax for appreciate the value of eliminating the tax, course, is in the details. So I am curi- married couples, children and the working while the wealthy are sure to feel the bite of ous as to exactly what it is that is en- poor. a new surtax. joying this broad political support. All told, the proposal would lower taxes for ‘‘I don’t think there’s enough of an under- I will note that Ways and Means as many as 90 million households, and Neal standing right now that you’ve got this tidal said it has broad support among House lead- tax wave about to hit everybody,’’ said Rep. members have now denounced—now de- ers and Democrats on the tax-writing House Chris Van Hollen (D–Md.), a Ways and Means nounced—this label they have applied Ways and Means Committee. ‘‘Everybody’s Committee member who is also chairman of to this 4.3 percent tax. They have de- on board,’’ he said. the Democratic Congressional Campaign nied the ‘‘surtax’’ label. Neal has yet to release details of the plan, Committee. ‘‘From a political perspective, So, Mr. President, I ask unanimous however, and others inside and outside the we need to lay the groundwork.’’ consent to prove what I said, that an committee say major pieces of it are still in Before the Memorial Day break, Ways and article from Tax Notes Today be print- Means Committee Chairman Charles B. Ran- flux. Some Democrats say Neal’s plan ed in the RECORD. That is a publication stretches the definition of the middle class gel (D–N.Y.) said he hoped to announce an dated June 13, 2007. AMT proposal as soon as Congress returned too far, providing AMT relief to too many There being no objection, the mate- wealthy households. They argue that the to Washington. But his timetable has slipped cutoff for families to be spared from the to late June, Democratic aides said, with the rial was ordered to be printed in the AMT should be lower, at $200,000, $150,000 or issue set to go before the full House some- RECORD, as follows: even $75,000. time in July. [From Tax Analysts, Tax Notes Today, June ‘‘There is consensus to make sure that we Republicans generally oppose new taxes on 13, 2007] have some responsible tax policy that will the wealthy, saying they disproportionately WAYS AND MEANS DEMOCRATS TAKE OFFENSE also treat taxpayers fairly. No one ever ex- affect small businesses, but are waiting to TO NOTION OF SURTAX pected to be caught in the AMT making 75 hear more before deciding whether to work Both House Ways and Means Committee grand,’’ said Rep. Xavier Becerra (D–Calif.), a with Democrats or offer their own plan to Chair Charles B. Rangel, D–N.Y., and com- Ways and Means Committee member whose abolish the AMT. mittee member Richard E. Neal, D–Mass. ‘‘House Democrats are going to have to Los Angeles district is populated by working have said that while their plan to reform the find their sea legs on this issue fast,’’ said poor. ‘‘We’re trying to come up with a fix alternative minimum tax will likely be paid Rep. Phil English (R–Pa.), the senior Repub- that does right by the great majority of for by increasing taxes on the wealthiest lican on the Ways and Means tax sub- Americans who fall into the middle class.’’ taxpayers, claims that they plan to create a committee. ‘‘Folks seem to be launching a The debate has focused attention on a dif- ‘‘surtax’’ on the rich are unfounded. ferent surtax proposed by the Tax Policy lot of trial balloons, and it’s all very festive. ‘‘We have not agreed to any surtax,’’ Ran- Center, a joint project of the Urban Institute But I don’t have enough really to react to gel told reporters June 12. ‘‘But that might and the Brookings Institution. That plan yet.’’ be another way to say that we’re going to ad- would eliminate the AMT and replace it with Mr. GRASSLEY. The concept under- just the rates to make up for what we don’t a 4 percent surcharge on income over $200,000 lying the alternative minimum tax raise in terms of all the loopholes and for families and $100,000 for singles, cutting fixes highlighted in this article in the knocking out credits and looking for this taxes for 22 million households and raising Washington Post is that the alter- $340 billion [in the tax gap].’’ them for more than 3 million. native minimum tax could be abolished Neal also objected to the notion of a surtax ‘‘Our plan is as simple as can be. And only in comments to Tax Analysts on June 11, al- 2 percent of the whole population would have for families and individuals making though he did not completely rule out the to pay it,’’ said Leonard E. Burman, director less than a given amount, and that the possibility of using the proposal when his of the Tax Policy Center. The plan has the resulting revenue loss would then be plan is finally introduced. added benefit of abolishing the complicated offset by a surtax—I want to empha- ‘‘Obviously we’re going to ask 1 million AMT at all income levels, Burman said, an size: creating a new tax, a surtax—on people to help pay for tax relief for 92 mil- approach some lawmakers find attractive. what the article refers to as our ‘‘na- lion people,’’ Neal said. On the other hand, fewer families’ taxes The idea of a surtax to pay for the Demo- would be cut, diminishing the ability of tion’s wealthiest households.’’ crats’ AMT reform proposal was first pro- Democrats to capitalize on the plan politi- Now, when they use the term the posed in a May 23 Urban-Brookings Tax Pol- cally. Since they took control of Congress in ‘‘nation’s wealthiest households,’’ re- icy Center paper in which Len Burman and January, Democrats have made repealing or member that was the whole concept of Greg Leiserson argued that the AMT should scaling back the AMT a top priority in hope the alternative minimum tax in the be repealed and replaced with a surtax of 4 of establishing tax-cutting credentials and first place, in 1969, to tax a few thou- percent on adjusted gross incomes above seizing the issue from Republicans for the sand people with this tax, and now they $100,000 for singles and above $200,000 for 2008 campaign. are not even being hit by it. married couples. That change would lead to The alternative minimum tax is a parallel a more progressive tax system and would be tax structure created in 1969 to nab 155 I will bet you, you could have this surtax, and you are still going to find approximately revenue neutral over 10 years, super-rich tax filers who had been able to they said. (For the paper, see Doc 2007–12677 wipe out their tax bills using loopholes and people who can hire the best lawyers to or 2007 TNT 102–36.) deductions. Under AMT rules, taxpayers avoid paying that tax. When I say Although the details of the Democratic must calculate their taxes twice—once using ‘‘avoid paying that tax,’’ I mean avoid AMT plan have not been released, subse- normal deductions and tax rates and once paying that tax in a legal way, not in quent media reports have claimed that Ways using special AMT deductions and rates—and a way that is extralegal. and Means Democrats plan to employ a sur- pay the higher figure. There are two basic proposals that tax in their effort to comply with House Because the AMT was not indexed for in- have been laid out in that Washington ‘‘pay as you go’’ budget rules. flation, its reach has expanded annually, de- House Majority Leader Steny H. Hoyer, D– livering a significant tax increase this spring Post article. One of them, put forward Md., acknowledged that the idea of a surtax to an estimated 4 million households. The by a member of the Ways and Means is under consideration by the Ways and AMT would have spread even more rapidly Committee of the other body, would Means leaders, but said he was unwilling to after President Bush’s tax cuts reduced tax- use a 4.3 percent surtax on income over ‘‘prejudge’’ whether Democrats in the cham- payers’ normal bills, but Congress enacted $500,000 to offset the elimination of the ber would ultimately support that proposal. yearly ‘‘patches’’ to restrain its growth. The alternative minimum tax for people He added.that pay-go rules will require law- most recent patch expired in December, and earning less than $250,000 a year. makers to make difficult choices when it unless Congress acts, the tax is projected to Now, it is estimated in the article comes to offsetting the costs of any AMT re- strike more than 23 million households next form legislation. spring, many of them earning as little as that the surtax of 4.3 percent would af- ‘‘What we want to do is fix the AMT per- $50,000 a year. fect about 1 million families. It is also manently and fix it in a way that does not House Democrats want legislation to spare suggested the alternative minimum add to the deficit,’’ Hoyer said. ‘‘We adopted those households while also lowering the tax bills would be decreased for fami- pay-go. We believe in pay-go.’’

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7623 Rangel and Neal have also repeatedly said I spoke about the alternative min- Of course, the best solution to this that they are committed to complying with imum tax at the beginning of this Con- mess would be S. 55, and that is called pay-go rules, and Rangel said all revenue- gress, in January and when the first the Individual Alternative Minimum raising options are on the table. ‘‘There’s nothing we’re not considering in quarterly payment was due. I am here Tax Repeal Act of 2007. It is a bipar- terms of raising revenue to take care of the now that the second quarterly payment tisan bill introduced by Senator BAU- AMT and expand the child credits,’’ said is due. I bet I will be here when the CUS, the chairman of the Finance Com- Rangel. third quarterly payment comes due, mittee, and this Senator, along with Rangel’s committee is expected to mark up saying largely the same thing I am Senators CRAPO, KYL, and SCHUMER. its AMT reform legislation in July, with saying right now. Senators LAUTENBERG, ROBERTS, and House floor consideration likely to come the Aside from the fact that Congress SMITH have also later signed on as co- same month. The committee’s AMT plan is does not seem to be under any pressure sponsors. expected to exempt from the AMT taxpayers to actually take action, all of the pro- earning less than $250,000. Those earning While permanent repeal without off- above $500,000 would see an increase in their posals I have discussed here share the setting is the best option, we abso- AMT liability, while taxpayers earning be- same major flaw in that they seek to lutely must do something to protect tween $250,000 and $500,000 would see a re- offset any revenues not collected taxpayers immediately, even if it in- duced AMT liability. Several other proposals through reform or repeal of the alter- volves a temporary solution such as an to benefit lower-income taxpayers—includ- native minimum tax. Notice I said increase in the exemption amount. Of ing expansion of the earned income and child ‘‘not collected.’’ And I did not use the course, if we do not do that, we are tax credits—are also expected to be part of word ‘‘lost.’’ This distinction is impor- going to be in the same fix next year, that proposal. tant for the simple reason that the rev- and I will be making the same points Mr. GRASSLEY. Now, the other plan enues we do not collect as a result of at that particular time. comes from our friends at the Tax Pol- alternative minimum tax relief are not This Friday, taxpayers making quar- icy Center. In a similar plan to the one lost because the alternative minimum terly payments are going to once again I just discussed, a 4-percent surtax tax collects revenues that were never discover the alternative minimum tax would be charged to individuals with supposed to be collected in the first is neither the subject of an academic adjusted gross incomes above $100,000 place. seminar nor a future problem we can and couples with incomes above Let me emphasize that. We cannot put off dealing with. It is the real $200,000. The surtax would apply to in- talk about lost revenue because we are world for those taxpayers filing Friday. come above those thresholds, and the talking about 23 million people being They are being hit by it. The alter- thresholds would be indexed for infla- hit by the alternative minimum tax native minimum tax is a real problem tion after the year 2007. Under this op- who were never supposed to be hit by right now, and if this Congress is seri- tion, the alternative minimum tax the tax in the first place. The alter- ous about tax fairness, we need to would be completely repealed. native minimum tax collects revenues stand up and take action on the alter- To give an idea of how many people it was never supposed to collect in the native minimum tax. would be hit by this surtax, according first place. Originally conceived as a Mr. President, I yield the floor. to IRS statistics of income, in the year mechanism to ensure high-income tax- The PRESIDING OFFICER. The Sen- 2004—the latest year we have informa- payers were not able to completely ator from New Mexico. tion available for—there were 1,427,197 eliminate their tax liability, the alter- Mr. BINGAMAN. Mr. President, let returns filed by singles reporting ad- native minimum tax has failed. me speak briefly. I know my colleague, justed gross incomes of at least In 2004, IRS Commissioner Everson Senator SANDERS, is in the Chamber $100,000. In the same year, married per- told the Finance Committee the same and wishes to speak. I will not delay sons filing jointly numbered 2,569,288 percentage of taxpayers continues to him long. returns reporting adjusted gross in- pay no Federal income tax. So the al- Let me make three brief points with comes above $200,000. ternative minimum tax is not even regard to Senator DOMENICI’s second- Mr. President, 2004 is the most recent working for those who were supposed degree amendment. What that amend- year we have for this data. I realize the to pay it. This was originally created ment does is it does three things to the proposal hits singles with incomes in that first year with just 155 tax- renewable portfolio standard I have greater then $100,000 and my numbers payers in mind. Of the two plans I dis- sent to the desk. would include someone with an income cussed earlier, the one that would im- First of all, it starts out by saying: exactly at that amount, but we can see pact the lower number of filers would Since it is a requirement that you the Tax Policy Center’s plan would im- still hit about 1 million families. See produce a certain percent of the power pact roughly 4 million singles and joint how 155 has grown to 1 million fami- you are selling from renewable sources, filers. It would likely impact more lies? let’s take the base amount of power than that, since my numbers do not in- Finally, if we offset revenues not col- you are selling and redefine it so it is clude heads of households or other cat- lected as a result of alternative min- smaller. It does that by saying: OK, if egories, but you get the idea, I hope, imum tax repeal or reform, total Fed- you are selling any power you produce that a lot of people would still be im- eral revenues are projected to push from nuclear sources, that does not pacted. through the 30-year historical average count in the base. So that automati- Now, as I said before, I am glad peo- and then keep going. cally eliminates 20 percent of the elec- ple are thinking about the alternative This chart I have in the Chamber, tricity being sold in this country minimum tax and realize it is a very which is reproduced from the non- today. real problem out there and, specifi- partisan—I want to emphasize ‘‘non- It says: OK, that way, you can sug- cally, this year, for 23 million middle- partisan’’—Congressional Budget Of- gest to people we have a 20-percent income-tax people who would not oth- fice’s publication called ‘‘The Long- goal here—whereas the one I have sent erwise be hit. But as I have discussed Term Budget Outlook,’’ issued in De- to the desk is only 15 percent. But you more and more of these proposals with cember 2005, illustrates—as you can see do not need to be a mathematician to you, I have started to see them—as my by the red mark—the ballooning of realize that after you take the 20 per- chart indicates—as more smoke and Federal revenues. cent out, and you take 20 percent of 80 mirrors than actual, real legislative The alternative minimum tax is a percent, then you are getting down to proposals. completely failed policy that is pro- 16 percent. So, essentially, there is For one thing, legislation is not in- jected to bring in future revenues it some smoke and mirrors going on troduced in a newspaper—even from was never designed to collect—and 23 there. the prestigious Washington Post. I million people being hit this year by it. Second, they say: OK, let’s redefine keep hearing about proposal after pro- A large share of that 23 million people how you can meet that requirement, posal, but nothing is actually done. Ev- being hit by it now in the second quar- that 16 percent requirement, which is eryone seems to agree something needs terly estimate they are filing is abso- what it, in fact, is. They say: You can to be done and needs to be done quick- lute proof of people being hurt by a tax meet it by using any of the renewable ly, but the discussion does not go fur- that was never supposed to hit them in sources the Bingaman amendment al- ther from that point. the first place. lows for; and that is, biomass, solar,

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE S7624 CONGRESSIONAL RECORD — SENATE June 13, 2007 wind, geothermal, tidal energy. Those group of environmental organizations, We urge you to oppose the ‘‘Clean Portfolio are all options. In addition, if you want and then another one from a separate Standard’’ amendment by Senator Domenici to build another nuclear plant, that group of environmental organizations— that allows new hydropower to qualify as new renewable energy under a RPS. Existing counts. If you want to improve energy be printed in the RECORD. hydropower generation comprises about 7% efficiency, that counts. If you want to There being no objection, the mate- of the nation’s net electricity production. adopt some demand response programs rial was ordered to be printed in the The RPS should be reserved for emerging to reduce demand, that counts against RECORD, as follows: technologies that need help to enter the your requirement. If you want to use CONSTELLATION ENERGY, marketplace. Hydropower, a mature tech- the capture and storage technology, Baltimore, MD, June 13, 2007. nology that has not advanced significantly that counts. The Secretary is given au- Senator JEFF BINGAMAN, since the 19th century. Allowing new hydro- thority to identify other things that Chairman, Senate Energy and Natural Re- power into a RPS would usher in a new era of dam building, destroying our nation’s last could count, too, which are unspecified sources Committee, Hart Building, Wash- ington, DC. remaining free-flowing rivers and encourage in the bill. DEAR CHAIRMAN BINGAMAN: Constellation developers to retrofit existing dams, many of So, essentially, what you wind up— Energy is a Fortune 200 competitive energy which have significant environmental im- and then the final thing it does with company based in Baltimore, Maryland. We pacts or pose a threat to public safety. our amendment is it says: If you are a are the nation’s leading supplier of competi- While hydropower is an important source State that has some kind of program, tive electricity to large commercial and in- of energy, this energy comes at a great cost dustrial customers and one of the largest to the health of our nation’s rivers and com- and you think it is pursuing the same— munities. Many hydropower plants pipe I will read the exact language. It says: wholesales power sellers. We serve approxi- mately 57,000 megawatts of load on a daily water around entire sections of river leaving If the governor of a State submits to the basis, which is equal to the amount of elec- them dry, or worse, constantly alternating Secretary a notification that the State has tricity consumed by the State of California between drought and floodlike conditions. in effect and is enforcing a State portfolio daily. Additionally, we are one of the largest Hydropower turbines can chop fish into standard that substantially contributes to renewable energy credit suppliers in the pieces, and can even change the temperature the overall goals of the Federal clean port- northeast. and basic chemistry of the water, harming folio standard under this section, then the We believe that it is time to enact a na- fish and wildlife. Hydropower’s impacts have State may elect not to participate in the tionwide, market-based renewable portfolio even caused the extinction of entire species. We urge you to support the Bingaman Re- Federal program. standard and we support your efforts to newable Portfolio Standard and oppose the amend S. 1419, with your RPS amendment So, essentially, it is an invitation to Domenici Clean Portfolio Standard. mandating a 15% standard by 2020. As you States to adopt something and then Sincerely, opt out, which I think undermines know, the State of Maryland also has a re- American River, American Whitewater, what we are trying to accomplish. newable portfolio standard, which we sup- Appalachian Mountian Club, California Out- Essentially, the way I read the ported. That law also takes into account a doors, California Sportfishing Protection Al- market-based mechanism to achieve its ob- liance, California Trout, Catawba-Wateree amendment by my colleague, his sec- jectives. In addition to generating or pur- ond-degree amendment would basically Relicensing Coalition, Coastal Conservation chasing renewable energy in Maryland, elec- League, Columbia Riverkeeper, Connecticut say: Let’s put together this com- tricity providers have the option of com- River Watershed Council. plicated trading system to keep track plying with the standard by making Alter- Central Sierra Environmental Resource of what utilities are doing, but, in fact, native Compliance payments (ACP). The Center, Foothill Conservancy, Foothills it is designed essentially to mirror Maryland law directs ACPs to be paid into Water Network, Friends of Butte Creek, what they are already planning to do the Maryland Renewable Energy Fund, the Friends of Living Oregon Waters, Friends of at any rate. It doesn’t require them to purpose of which is, ‘‘to encourage the devel- the Crooked River, Friends of the River, opment of resources to generate renewable do anything different. Georgia River Network, Hydropower Reform energy in the State.’’ The Maryland law goes Coalition, Idaho Rivers United. The amendment I have sent to the on to say that, ‘‘. . . the Fund may be used Michigan Hydro Relicensing Coalition, desk does require them to do some only to make loans and grants to support the Missouri Coalition for the Environment, New things differently. They are going to creation of new . . . renewable sources in the England FLOW, New York Rivers United, have to actually start either producing State.’’ Northwest Resource Information Center, energy from renewable sources, buying We are somewhat concerned that your Northwest Sportfishing Industry Associa- energy that has been produced from re- amendment may create a situation where tion, Oregon Wild, Republicans for Environ- electricity providers and, by proxy, our cus- mental Protection, River Alliance of Wis- newable sources by someone else, buy- tomers, may end up paying duplicatively for consin, San Juan Citizens Alliance. ing credits from someone else who has a separate federal and state program because Save Our Wild Salmon Coalition, The produced more renewable energy than of uncertainty regarding your definition of, Lands Council, Trout Unlimited, Upper Chat- they, in fact, needed, or pay a compli- ‘‘direct associations with the generation or tahoochee Riverkeeper, Utah Rivers Council, ance fee to the Secretary of Energy. So purchase of renewable energy’’. Vermont Natural Resources Council, Wash- we have some real teeth in our provi- We think this issue should be surmount- ington Kayak Club, West Virginia Rivers Co- sion. able and would like to work with you on this alition, Western Carolina Paddler. Now, it is not as strong as some Sen- concern as your provision moves through the legislative process. JUNE 13, 2007. ators would like. I know my colleague, Finally, we appreciate your long standing DEAR SENATOR: On behalf of the under- who is about to speak, will speak to support of nuclear power and want to con- signed organizations, we urge you to support that issue, and I know Senator KERRY tinue our efforts to bring the next genera- the Renewable Electricity Standard (RES) to from Massachusetts feels very strongly tion of nuclear power plants to this country. be offered by Senator Bingaman. Sincerely, The Bingaman RES amendment would re- that this is not a strong enough re- quire utilities to obtain at least 15 percent of PAUL J. ALLEN, quirement that I have suggested. But I their electricity from clean renewable en- would suggest to anyone who is study- Senior Vice President, Corporate Affairs, Constellation Energy Group. ergy sources by 2020. A recent analysis by ing these issues, the proposal I have the Union Concerned Scientists found that the Bingaman amendment would save con- made is a vastly stronger proposal than JUNE 13, 2007. the one that my colleague, Senator sumers $16.7 billion on their energy bills, VOTE YES ON THE BINGAMAN RENEWABLE while reducing global warming emissions by DOMENICI, has proposed as an alter- PORTFOLIO STANDARD, VOTE NOONTHE native. the equivalent of taking 41 million cars off DOMENICI CLEAN PORTFOLIO STANDARD the road. The standard will diversify our en- I urge my colleagues to study both DEAR SENATOR: On behalf of our members ergy supply with American-grown energy re- amendments tonight and perhaps to- and supporters nationwide, we urge you to sources create thousands of good new jobs, morrow we can get a vote on both support the amendment by Senator Binga- and generate millions of dollars for farmers, amendments. Also, I know Senator man to create a national Renewable Port- ranchers, and local communities. KERRY would like an opportunity to folio Standard (RPS) in energy security leg- We urge you to oppose the Domenici propose that we have even a stronger islation now being considered on the Senate amendment. standard. I think he should be given floor. Adopting a RPS would enhance na- The Domenici amendment would severely tional energy security by diversifying our curtail our ability to deploy clean renewable that opportunity. sources of electricity generation and would resources and stall investment in a clean re- Mr. President, I ask unanimous con- also have substantial environmental bene- newable future. Because it includes non- sent that three letters—one from Con- fits, such as reducing the emissions of green- renewables, coupled with huge state and fed- stellation Energy, one from a large house gases. eral waivers, the Domenici amendment

VerDate Aug 31 2005 04:31 Jul 29, 2007 Jkt 059060 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\S13JN7.REC S13JN7 rfrederick on PROD1PC69 with CONG-REC-ONLINE June 13, 2007 CONGRESSIONAL RECORD — SENATE S7625 would fail to guarantee any of the benefits that the Senate now be in a period for All over our country, we are lacking for consumers, large energy users, and farm- the transaction of morning business in public transportation. In Europe, in ers and ranchers contained in the Bingaman with Senators permitted to speak Japan, in China, their rail systems are amendment For example, the Domenici amendment therein for up to 10 minutes. far more sophisticated and advanced would: The PRESIDING OFFICER. Without than we are. Our roadways, from Waive requirements for state to partici- objection, it is so ordered. Vermont to California, are clogged pate in the program if the governor found The Senator from Vermont is recog- with cars, many of them getting poor state programs to be ‘‘substantially contrib- nized. mileage per gallon. Yet we are not in- uting to the overall goal.’’ This vague lan- vesting and creating jobs in mass guage could stifle investment in renewables f and cripple the federal trading program that ENERGY transportation. But it is not only assures the lowest possible cost for renew- transportation that we are lacking in, able energy. Mr. SANDERS. Mr. President, let me studies have indicated that if we make Weaken renewable requirements by includ- thank Senator BINGAMAN for his lead- our own homes more energy efficient, ing non-renewables such as nuclear power. ership efforts in addressing one of the we can save substantial amounts of en- These provisions would subtract all existing major crises facing our country. I ergy. nuclear generation from the utilities renew- thank Senator DOMENICI as well. ables requirement, give utilities credits for Some estimates are, if we do the As Senator BINGAMAN just indicated, already-planned and economic capacity up- right things, we could cut our energy grades, provide a windfall for the poorest I would go further than he is going in expenditures by 40 percent—40 percent. performing nuclear plants of the last 3 years, his proposal. I think he has made an Yet there are millions of homes in this and give credits for building new nuclear important step forward, but I think country inhabited by lower income power plants that are already heavily sub- given the gravity of the situation we people who don’t have the money to sidized in the 2005 Energy bill. These nuclear face, it is imperative for the future not adequately insulate their homes, put in bailouts and subsidies would reduce the po- only of our country but for the future tential contribution of new renewable energy the kind of roofs they need, the kind of from the Bingaman proposal. of our planet that we seize this mo- windows they need, and we are literally Allow utilities to receive credits for ‘‘an ment and we be bold and we be aggres- seeing energy go right out of the doors inherently low-emission technology that sive because if we are not, what the sci- and the windows because we are not captures and stores carbon’’ without defining entific community is telling us is that adequately funding weatherization. what that technology might be or assuring the results could be catastrophic. But it is not just lower income people. how much, if any, of the carbon actually gets When thousands of scientists from stored, or how permanent such storage is. Many middle-class families are also in Allow DOE to designate ‘‘other clean en- the Intergovernmental Panel on Cli- homes that are inadequately weather- ergy sources’’ to qualify for clean energy mate Change tell us with 100 percent ized, inadequately insulated. credits without any restrictions on the Sec- certainty that global warming is real, One of the things I have long believed retary. and with 90 percent certainty that it is as I have studied this issue of global Undercuts the development of new renew- manmade, we should listen. When these warming is that not only do we have ables by including all ‘‘new’’ hydropower. scientists tell us that today, in terms This would encourage new dam construction the moral imperative to reduce green- irrespective of the potential for significant of the melting of glaciers and perma- house gas emissions significantly so environmental impacts these facilities can frost, in terms of the increase in that we can reverse global warming, have. The Domenici amendment would re- drought around the world, the increase but in that process we can seize this verse the compromise language in the Binga- of forest fires we are seeing in the crisis, respond to this crisis, and create man amendment that would permit ‘‘incre- United States, in terms of the loss of some very golden opportunities in mental’’ hydro power that encourages new drinking water and farmland all over terms of creating good-paying jobs. If hydropower generation while protecting nat- the world today, it would be absolutely ural resources. you look at those areas in the world Includes electricity savings from energy irresponsible not only for us but for fu- where they have moved most effec- efficiency and demand-response programs, ture generations if we did not stand up tively in terms of reducing greenhouse which will further erode the national energy and say we are going to do everything gas emissions, such as Germany, many security, diversity, economic, and environ- we can to lower greenhouse gas emis- countries in Europe, and our own State mental benefits of developing new renewable sions and reverse global warming. of California, the result has been, yes, energy sources. While we support a separate I have introduced legislation—which there has been economic dislocation, standard for energy efficiency and demand- the Presiding Officer is one of the co- but at the end of the day, they have response, the Domenici amendment would sponsors of and was introduced with create a zero sum game between efficiency created a lot more jobs than they have and renewable energy by forcing them to Senator BOXER—which, in fact, would lost. compete under the same standard. lower greenhouse gas emissions by 80 I have worked with groups such as Overall, the combined effects of allowing percent less than where they were in the Apollo Project, which is a group nuclear, efficiency, demand-response, as well 1990. I think that is the type of aggres- that brings together labor organiza- as new hydro, and other non renewable clean sive effort that we need. If Senator tions as well as environmentalists, energy sources to qualify for the standard- KERRY offers his amendment to make without any restrictions—would greatly re- that say: How do we move toward low- duce, and potentially eliminate, the develop- sure 20 percent of the electricity we ering greenhouse gas emissions and ment of new renewable energy sources and produce in this country comes from re- creating good-paying jobs? The oppor- the corresponding economic and environ- newables, I will strongly support that tunities are sitting right in front of us. mental benefits. legislation. Fifteen percent, as Senator Detroit has lost billions and billions We urge you to support the strong Binga- BINGAMAN has proposed, is a good step of dollars year after year by building man RES amendment and oppose weakening forward, but it does not go far enough. cars that many Americans no longer amendment such as the Domenici amend- The bad news is that as a nation, we ment, as it would take us backwards, not want. Maybe if we move toward en- forwards on energy policy. are lagging far behind the rest of the ergy-efficient cars, people might start Sincerely, world, or many countries in the world, buying those cars, and instead of lay- EarthJustice, Environmental Law and in going forward in terms of energy ef- ing off workers, maybe we can create Policy Center, Greenpeace, National ficiency and sustainable energy. The more jobs. Think of the jobs we can Audubon Society, National Environ- bad news is that today in America, in create as we build a rail system that mental Trust, Natural Resource De- terms of transportation, we are driving we are proud of. As cities like Chicago fense Council, Sierra Club, Southern vehicles which, if you can believe it, and New York and other cities rebuild Alliance for Clean Energy, Union of get worse mileage per gallon than was Concerned Scientists, U.S. Public In- their antiquated subway systems, we terest Research Group, Western Orga- the case 20 years ago. Meanwhile, sev- can create jobs doing that. nization of Resource Councils. eral weeks ago, I was in a car which We can create jobs all over this coun- was a retrofitted Toyota Prius which try in terms of energy efficiency. As we f gets 150 miles per gallon. Yet, as a na- move toward biofuels, I can tell my MORNING BUSINESS tion, on average we are driving vehicles colleagues that in my State of Mr. BINGAMAN. Mr. President, at which get worse mileage per gallon Vermont, our small family farmers are this point I ask unanimous consent than we had 20 years ago. struggling very hard to stay on the

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