The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998” mentioning the U.S. Dept. of Energy was published in the House of Representatives section on pages H10951-H10955 on Oct. 15, 1998.
The publication is reproduced in full below:
ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I move to suspend the rules and concur in the Senate amendment to the House amendments to the Senate bill (S. 417) to extend energy conservation programs under the Energy Policy and Conservation Act through September 30, 2002.
The Clerk read as follows:
Senate Amendments to House Amendments:
Page 13, after the matter following line 19, of the House engrossed amendments, insert:
SEC. 9. PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY
ENTITIES IN INSULAR AREAS OF UNITED STATES AND
FREELY ASSOCIATED STATES.
(a) Section 161 of the Energy Policy and Conservation Act
(42 U.S.C. 6241) is amended by adding at the end the following:
``(j) Purchases From Strategic Petroleum Reserve by Entities in Insular Areas of United States and Freely Associated States.--
``(1) Definitions.--In this subsection:
``(A) Binding offer.--The term `binding offer' means a bid submitted by the State of Hawaii for an assured award of a specific quantity of petroleum product, with a price to be calculated pursuant to paragraph (2) of this subsection, that obligates the offeror to take title to the petroleum product without further negotiation or recourse to withdraw the offer.
``(B) Category of petroleum product.--The term `category of petroleum product' means a master line item within a notice of sale.
``(C) Eligible entity.--The term `eligible entity' means an entity that owns or controls a refinery that is located within the State of Hawaii.
``(D) Full tanker load.--The term `full tanker load' means a tanker of approximately 700,000 barrels of capacity, or such lesser tanker capacity as may be designated by the State of Hawaii.
``(E) Insular area.--The term `insular area' means the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, the Freely Associated States of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
``(F) Offering.--The term `offering' means a solicitation for bids for a quantity or quantities of petroleum product from the Strategic Petroleum Reserve as specified in the notice of sale.
``(G) Notice of sale.--The term `notice of sale' means the document that announces--
``(i) the sale of Strategic Petroleum Reserve products;
``(ii) the quantity, characteristics, and location of the petroleum product being sold;
``(iii) the delivery period for the sale; and
``(iv) the procedures for submitting offers.
``(2) In general.--In the case of an offering of a quantity of petroleum product during a drawdown of the Strategic Petroleum Reserve--
``(A) the State of Hawaii, in addition to having the opportunity to submit a competitive bid, may--
``(i) submit a binding offer, and shall on submission of the offer, be entitled to purchase a category of a petroleum product specified in a notice of sale at a price equal to the volumetrically weighted average of the successful bids made for the remaining quantity of the petroleum product within the category that is the subject of the offering; and
``(ii) submit 1 or more alternative offers, for other categories of the petroleum product, that will be binding if no price competitive contract is awarded for the category of petroleum product on which a binding offer is submitted under clause (i); and
``(B) at the request of the Governor of the State of Hawaii, a petroleum product purchased by the State of Hawaii at a competitive sale or through a binding offer shall have first preference in scheduling for lifting.
``(3) Limitation on quantity.--
``(A) In general.--In administering this subsection, in the case of each offering, the Secretary may impose the limitation described in subparagraph (B) or (C) that results in the purchase of the lesser quantity of petroleum product.
``(B) Portion of quantity of previous imports.--The Secretary may limit the quantity of a petroleum product that the State of Hawaii may purchase through a binding offer at any offering to 1/12 of the total quantity of imports of the petroleum product brought into the State during the previous year (or other period determined by the Secretary to be representative).
``(C) Percentage of offering.--The Secretary may limit the quantity that may be purchased through binding offers at any offering to 3 percent of the offering.
``(4) Adjustments.--
``(A) In general.--Notwithstanding any limitation imposed under paragraph (3), in administering this subsection, in the case of each offering, the Secretary shall, at the request of the Governor of the State of Hawaii, or an eligible entity certified under paragraph (7), adjust the quantity to be sold to the State of Hawaii in accordance with this paragraph.
``(B) Upward adjustment.--The Secretary shall adjust upward to the next whole number increment of a full tanker load if the quantity to be sold is--
``(i) less than 1 full tanker load; or
``(ii) greater than or equal to 50 percent of a full tanker load more than a whole number increment of a full tanker load.
``(C) Downward adjustment.--The Secretary shall adjust downward to the next whole number increment of a full tanker load if the quantity to be sold is less than 50 percent of a full tanker load more than a whole number increment of a full tanker load.
``(5) Delivery to other locations.--The State of Hawaii may enter into an exchange or a processing agreement that requires delivery to other locations, if a petroleum product of similar value or quantity is delivered to the State of Hawaii.
``(6) Standard sales provisions.--Except as otherwise provided in this Act, the Secretary may require the State of Hawaii to comply with the standard sales provisions applicable to purchasers of petroleum product at competitive sales.
``(7) Eligible entities.--
``(A) In general.--Subject to subparagraphs (B) and (C) and notwithstanding any other provision of this paragraph, if the Governor of the State of Hawaii certifies to the Secretary that the State has entered into an agreement with an eligible entity to carry out this Act, the eligible entity may act on behalf of the State of Hawaii to carry out this subsection.
``(B) Limitation.--The Governor of the State of Hawaii shall not certify more than 1 eligible entity under this paragraph for each notice of sale.
``(C) Barred company.--If the Secretary has notified the Governor of the State of Hawaii that a company has been barred from bidding (either prior to, or at the time that a notice of sale is issued), the Governor shall not certify the company under this paragraph.
``(8) Supplies of petroleum products.--At the request of the Governor of an insular area, the Secretary shall, for a period not to exceed 180 days following a drawdown of the Strategic Petroleum Reserve, assist the insular area or the President of a Freely Associated State in its efforts to maintain adequate supplies of petroleum products from traditional and nontraditional suppliers.''.
(b) Regulations.--
(1) In general.--The Secretary of Energy shall issue such regulations as are necessary to carry out the amendment made by subsection (a).
(2) Administrative procedure.--Regulations issued to carry out the amendment made by subsection (a) shall not be subject to--
(A) section 523 of the Energy Policy and Conservation Act
(42 U.S.C. 6393); or
(B) section 501 of the Department of Energy Organization Act (42 U.S.C. 7191).
(c) Effective Date.--The amendment made by subsection (a) takes effect on the earlier of--
(1) the date that is 180 days after the date of enactment of this Act; or
(2) the date that final regulations are issued under subsection (a).
SEC. 10. INDIAN ENERGY RESOURCE DEVELOPMENT.
Section 2603 of the Energy Policy Act of 1992 (25 U.S.C. 3503) is amended in subsection (c) by striking ``and 1997'' each place it appears and inserting ``1999, 2000, 2001, 2002 and 2003'' in lieu thereof.
SEC. 11. REMEDIAL ACTION.
(a) Section 1001(b)(2)(C) of the Energy Policy Act of 1992
(42 U.S.C. 2296a) is amended by striking ``$65,000,000'' and inserting ``$140,000,000''.
(b) Section 1003(a) of such Act (42 U.S.C. 2296a-2) is amended by striking ``$415,000,000'' and inserting
``$490,000,000''.
(c) Section 1802(a) of the Atomic Energy Act of 1954 (42 U.S.C. 2297g-1) is amended by striking ``$480,000,000'' and inserting ``$488,333,333''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Colorado (Mr. Dan Schaefer) and the gentleman from Texas (Mr. Hall) each will control 20 minutes.
The Chair recognizes the gentleman from Colorado (Mr. Dan Schaefer).
General Leave
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on S. 417.
The SPEAKER pro tempore. Is there objection to the request of the gentleman from Colorado?
There was no objection.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield myself 5 minutes.
Mr. Speaker, today, the House does consider S. 417, the Energy Conservation Reauthorization Act of 1998. S. 417 improves U.S. energy security by reauthorizing various conservation programs. It also reduces the energy bills paid by low income consumers, cuts the energy bill paid by the taxpayers through improving the energy efficiency of Federal agencies, and promotes energy security by encouraging the use of biodiesel fuel to reduce dependence on the petroleum motor fuels.
This is not a controversial bill. It passed the House on September 28 by a voice vote, and it had very strong bipartisan support. The original House bill was introduced jointly by the ranking member of the Subcommittee on Energy and Power, the gentleman from Texas (Mr. Hall), and was strongly supported by many on the other side of the aisle. When the House considered the bill last month, not one Member rose in opposition.
The Senate approved an amendment to S. 417 that adds three sections to the bill. One section assures that the State of Hawaii has access to oil from the Strategic Petroleum Reserve in the event of a drawdown. Another reauthorizes a program that assists Indian tribes develop energy sources of their own. The final section provides for cleanup of contaminated thorium sites. I have no objections to the Senate amendment.
The first section of the Senate amendment assures the State of Hawaii has access to oil supplies in the event of a Strategic Petroleum Reserve drawdown. The State of Hawaii needs assurance of access to oil during a SPRO drawdown because it is much more dependent on oil in other parts of the U.S.
This amendment does not undermine the SPRO of which I am very favorable to for many years. I have spent the last 4 years fighting to protect the SPRO against misguided attempts to sell off our Nation's oil stockpile. I have done so to assure that the SPRO is available in the event of an oil supply emergency. I would not support the Senate amendment if it undermined the SPRO reserves.
The Senate amendment also reauthorizes a program that provides grants and loans to Indian tribes to assist their development of energy resources. Many Indian tribes are in remote areas that are not well-
connected to the electric and natural gas transmission system. This program provides funding to assist Indian tribes develop energy resources.
The new thorium section addresses concerns about the adequacy of funding for contaminated thorium sites. In the Energy Policy Act of 1992, the Federal government accepted responsibility for funding its fair share of cleanup at such sites. The Senate amendment simply ensures the Federal government continues to own up to its responsibility for thorium cleanup.
I urge support for S. 417.
Mr. Speaker, I reserve the balance of my time.
Mr. HALL of Texas. Mr. Speaker, I yield myself such time as I may consume.
(Mr. HALL of Texas asked and was given permission to revise and extend his remarks.)
Mr. HALL of Texas. Mr. Speaker, I am pleased, of course, today to rise in support of this bill, the underlying vehicle for this package of legislation, H.R. 4017, which was introduced by the chairman of the Subcommittee on Energy and Power, my good friend, the gentleman from Colorado (Mr. Dan Schaefer), and have joined him as a cosponsor. That measure passed the House, I think, back in September.
Due to what then appeared to be the lateness of the congressional session, the body of H.R. 4017 was substituted for the text of a bill that was being held at the Speaker's desk, the Senate bill, S. 417, and forwarded to the Senate.
The other body added three other provisions to the measure, and they returned it to us. The provisions would ensure, and this is a very important segment of it, ensure that Hawaii was guaranteed access to the Strategic Petroleum Reserve during an oil supply disruption, and extend the authorization of some things.
But because of the distance of Hawaii, and not being contiguous to the other 48 States, they are in a peculiar and a different position and have an access to the SPRO, as does the State of Texas and other States that are here in the 48.
This bill is a companion to H.R. 2472 that the President signed into law on June 1. A new energy security law reauthorized the SPRO and amended the international energy agency statutes to comply.
Actually, the use of biodiesel, that is a part of this that the gentleman from Illinois (Mr. Shimkus) and the gentlewoman from Missouri
(Ms. McCarthy) have added that will help make biodiesel blended fuel a more attractive option as a replacement fuel under the Energy Policy Act of 1992 that will give them some more leeway and some more help in addition to having access to the SPRO. The use of biodiesel will reduce the carbon dioxide emissions. There is a lot of good things it does.
{time} 1315
It reduces other air pollutants, particulates, carbon monoxide and sulfur dioxide. Our new Secretary of Energy also, Mr. Bill Richardson, highlighted these facts when as a member of the House he joined 33 of the other colleagues here writing to then Secretary of Energy Mrs. O'Leary to urge DOE to include a 20 percent biodiesel blend as an alternative fuel under the 1992 Energy Policy Act.
I think it is a good act. I urge that we pass this act.
Mr. Speaker, I am pleased to rise today in support of S. 417. The underlying vehicle for this package of legislation, H.R. 4017, was introduced by the chairman of the Energy and Power Subcommittee, my good friend Dan Schaefer. I joined him as an original cosponsor, and that measure passed the House by voice vote on September 28. Due to what then appeared to be the lateness of the congressional session, the body of H.R. 4017 was substituted for the text of a bill that was being held at the Speaker's desk, S. 417, and forwarded to the Senate. The other body added three other provisions to that measure and returned it to us. Those provisions would ensure that Hawaii has guaranteed access to the Strategic Petroleum Reserve during an oil supply disruption, extend the authorization of the Indian Energy Resources Program through 2003, and authorize additional funding for cleanup of a thorium-
contaminated site in West Chicago, Illinois.
This bill is a companion measure to H.R. 2472, which the President signed into law on June 1st. That new energy security law reauthorized the Strategic Petroleum Reserve and amended the International Energy Agency statutes.
The bill before us today reauthorizes several small, but important, energy conservation programs for five years. They include: the State Energy Conservation Program and Institutional Conservation Program; and the weatherization conservation program in the Energy Conservation and Production Act.
The bill also includes a number of technical changes to the three statutes that are being reauthorized or amended: the Energy Policy and Conservation Act; the Energy Conservation and Production Act; and the National Energy Conservation Policy Act. I commend the staff, both with our Committee and with the Legislative Counsel's office, for their attention to detail and for the time they have committed to this effort to make our public laws as accurate and as easy to interpret as possible.
Additionally, S. 417 makes legislative and judicial branch entities eligible to enter into Energy Savings Performance Contracts and extends permanently the provisions of the Defense Production Act of 1950 which provide the President with priority contracting authority for projects which maximize domestic energy supplies in times of emergency.
This legislation also includes a very important, bipartisan amendment, authored by Representatives Shimkus of Illinois and Karen McCarthy of Missouri, that will help make biodiesel blended fuel a more attractive option as a replacement fuel under the Energy Policy Act of 1992. This amendment sets up a credit mechanism, through which heavy duty vehicle users may accumulate modest credits that may be used, under the existing provisions of the 1992 Act, to help fleets meet their petroleum displacement requirements. This language, which was adopted by the Commerce Committee after lengthy, bipartisan negotiations that included representatives of the Natural Gas Vehicle Coalition and the National Biodiesel Board, is a modified version of H.R. 2568, legislation introduced by Representatives Shimkus and McCarthy.
Mr. Speaker, the use of biodiesel will reduce carbon dioxide emissions. Biodiesel use also substantially reduces other air pollutants--particulars, carbon monoxide and sulfur dioxide. Our new Secretary of Energy, former House Commerce Committee member Bill Richardson, highlighted these facts when, as a member of this House, he joined with 33 of his colleagues in writing to then-Energy Secretary O'Leary to urge DOE to include a 20 percent biodiesel blend as an alternative fuel under the 1992 Energy Policy Act. I include a copy of this correspondence with my statement and urge my colleagues to support this legislation today so it can be sent to the President for his signature.
U.S. Congress,
Washington, DC, October 25, 1996.Hon. Hazel R. O'Leary,Secretary, U.S. Department of Energy,Washington, D.C.
Dear Secretary O'Leary, As members of the U.S. House of Representatives concerned with our nation's energy security, we would like to express our support for biodiesel, a renewable alternative fuel for diesel engines derived from vegetable oils, such as soybean oil. We believe the Department of Energy (DOE) should initiate a rulemaking to include B20, a 20% biodiesel/80% diesel fuel blend, as an alternative fuel under the Energy Policy Act of 1992 (EPACT). B20 is good for farmers, good for the environment, good for the economy and will contribute to national energy security. Including B20 as an alternative fuel would also be consistent with the legislative intent of EPACT.
Biodiesel has important environmental benefits. Biodiesel is registered with the EPA as a fuel and fuel additive. Scientific evidence demonstrates that using B20 reduces most harmful exhaust emissions from diesel engines. Biodiesel can also be processed from recycled cooking oils and waste animal fats.
Biodiesel promotes economic development and energy security. As a renewable fuel, biodiesel offers America's farmers stable, long-term markets for efficiently-produced soybean oil. Biodiesel also means jobs and tax revenues from processing a greater portion of our domestic soybean oil in the U.S. Use of domestic biodiesel improves national energy security by displacing imported energy.
Under current DOS regulations, 75% of affected federal and state government fleet vehicle purchases and 90% of affected fleet vehicle purchases by private alternative fuel suppliers must be alternative fueled vehicles by the year 2001. Future DOE EPACT regulations may extend similar vehicle purchase requirements to municipal and other large private company fleets.
Congress clearly intended that EPACT should be ``fuel neutrial'' Fuel neutrality simply means there is no presumption in the law to favor any particular alternative fuels as a means of compliance with the goals of EPACT. Congress made EPACT fuel neutral to give regulated fleets the flexibility to decide which alternative fuels are compatible with their operations. B20, therefore, will give regulated fleets greater flexibility to comply with EPACT.
B20 is the most popular biodiesel blend tested so far with diesel consumers and engine manufacturers. B20 provides many of the environmental and safety benefits of pure biodiesel at a fraction of the cost. B20 is also compatible with existing diesel engine maintenance and refueling facilities. More than 10 million miles of in-service pilot programs have been conducted across the nation using B20. For these reasons, B20 should be a popular EPACT compliance option for regulated fleets that use diesel vehicles.
Before B20 can be included as an EPACT alternative fuel, the DOE must amend its current regulations. The American Soybean Association and other supporters of B20 have recently submitted a petition to the DOE to initiate a B20 rulemaking. Initiating a rulemaking will allow the DOE to collect data on B20 and to render a reasoned decision. Once all of the data on the benefits of B20 is placed in the public record, we are confident that you will decide to include B20 as an alternative fuel. Therefore, we urge you to immediately initiate a rulemaking to amend existing DOE regulations to include B20 as an EPACT alternative fuel.
The recent re-escalation of conflict in the Middle East has again highlighted our nation's dependence on imported energy. Including B20 as an EPACT alternative fuel will allow domestically produced biodiesel to immediately play a role in reducing that dependence. It will also benefit the environment, our farmers and our economy, as well as assist regulated fleets to comply with EPACT.
We appreciate your active interest in expanding the role of renewable fuels in U.S. energy policy. Please keep us apprised of your progress on this important matter.
Sincerely,
Tom Latham, -- --, Jim Bunning, Dick Durbin, Jerry F.
Costello, Doug Bereuer, Jan Meyers, Lane Evans, Bill
Richardson, Ed Bryant, John Spratt, Tom Ewing, Tim
Hutchinson, John D. Dingell, Glenn Poshard, James A.
Leach, -- --Ed Whitfield, David Minge, Jim Lightfoot,
Collin C. Peterson, Charles T. Canady, Ron Lewis, John
Joseph Moakley, Roger F. Wicker, Jim Nussle, Greg
Ganske, --,-- --, Walter B. Jones, Jr., -- --, Dave
Camp, Saxby Chambliss, Eva M. Clayton.
Mr. Speaker, I reserve the balance of my time.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 1 minute to the gentleman from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Speaker, Steven Covey in his book ``The Seven Habits of Highly Effective People'' says one of the most important habits is to think win-win. I am very happy about this bill today and I am very happy to stand in support, particularly of the biodiesel portion of this because this is not just win-win, it really is win-win-
win. It is a win for our environment because when you blend soybean oil with diesel fuel, you cut particulates by almost half. If you have ever sat behind a diesel truck or a bus when it was taking off, I think the whole notion of eliminating or cutting those particulates by 50 percent is something that clearly is a win for the environment. It is also a win for our farmers because the Soybean Growers Association says this bill will add between 7 and 10 cents to the price of a bushel of soybeans. Particularly in this market, that is very much an important win for our farmers. But finally it is a win for our energy independence. We really have not had much of an energy policy for the last several years. This is a good step in the right direction.
I want to congratulate the gentleman from Illinois (Mr. Shimkus), the gentleman from Colorado (Mr. Dan Schaefer), the gentleman from Texas
(Mr. Hall) and all of the Members of Congress who have worked on this very important piece of legislation. It really is a win-win-win situation.
Mr. HALL of Texas. Mr. Speaker, I yield 3 minutes to the gentleman from Ohio (Mr. Traficant).
Mr. TRAFICANT. Mr. Speaker, I want to associate myself with the comments of our chairman the gentleman from Colorado (Mr. Dan Schaefer), the gentleman from Texas (Mr. Hall) and all the supporters of this bill. I believe energy independence should be a goal of the Congress in addition to conservation and our environment. But I have asked for this time for a different reason. Our illustrious chairman, the gentleman from Colorado (Mr. Dan Schaefer), this is probably and, unless he has another bill today, could be his last bill.
There are so many Members that love Dan Schaefer. He has been a great chairman, a great friend and everybody on both sides of the aisle appreciates that. I want you to know that from the bottom of my heart and I thank you.
I want to cite one example. Although he destroyed the Democrat baseball team every year, he is undefeated with help from guys like Shimkus and Largent, et cetera, but he even played Ileana Ros-Lehtinen and Jo Ann Emerson. And I said to him, ``Chairman, you're playing these two women and if you had any guts you'd call them into your office and cut them,'' naturally jokingly. And he laughed. But then he not only played Ileana and Jo Ann Emerson, he found the time to put them in the game and reward them, two great women in our Congress, for having practiced. I cite that, because that is about the way Dan Schaefer is; fair, he made sure everybody got a shot, he did that with me and my district, and we thank you, Chairman. With that, I support this bill very strongly.
Mr. HALL of Texas. Mr. Speaker, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentleman from Texas.
Mr. HALL of Texas. Would the gentleman also join me in this next session if in the event we are both back, and I am hoping we will be, that when we do finally deregulate electricity that that bill be named the Electrical Deregulation Schaefer Bill of 1999 or maybe the Schaefer Bill of the Year 2010 or something like that?
Mr. TRAFICANT. Reclaiming my time, I think we could also say that this chairman has his fingerprints on changing the tax policy in America, too. But if I am back, I want to see a building named after the illustrious chairman.
I thank him for all he has done.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Shimkus), the author of the biodiesel bill.
Mr. SHIMKUS. Mr. Speaker, I want to thank the gentleman from Colorado
(Mr. Dan Schaefer) and I want to thank the gentleman from Virginia (Mr. Bliley) for their hard work and persistence in bringing S. 417 to the floor today. Included in this legislation is language which the gentlewoman from Missouri (Ms. McCarthy) and I authored to promote the use of biodiesel fuel.
Our legislation would afford vehicle fleet managers affected by the Energy Policy Act of 1992 more flexibility to comply with the onerous mandates of this act by allowing them to substitute actual biodiesel fuel used for vehicle acquisitions.
This legislation would also enhance our national energy security by developing an environmentally friendly diesel fuel which is made in America. As many of my colleagues know by now, biodiesel is derived from agricultural products such as soybeans, rapeseed or beef tallow. Some producers even make this fuel out of reprocessed deep fryer fat. In short, biodiesel will reduce our nation's dependence on foreign oil imports.
This legislation is supported by numerous organizations, including the American Soybean Association, the Natural Gas Vehicle Coalition, the American Farm Bureau Federation and many others.
Mr. Speaker, I also want to thank a staff member of the House Commerce Committee, Joe Kelliher. He has done excellent work on this issue and has always made his services available to me and my staff. Thank you, Joe.
Mr. ABERCROMBIE. Mr. Speaker, I rise in strong support of S. 417, the Energy Conservation Reauthorization Act of 1998.
The legislation we are considering today is important to the State of Hawaii and the Nation. Hawaii and the Pacific territories have special needs during an energy emergency since we are isolated from the U.S. energy supply by more than 7,000 miles or one-quarter of the way around the globe. Oil accounts for more than 90 percent of Hawaii's energy and almost all of our oil is imported. In addition, we depend entirely on oil for our electricity generation.
The U.S. Strategic Petroleum Reserve in Louisiana and Texas is designed to help all consumers by dampening price rises and using markets to allocate oil efficiently through swaps or proximity delivery. Even so, time emergency deliveries are still problematic. Since all of our oil is delivered by tanker, we are very vulnerable to a cutoff of oil supplies. This bill gives Hawaii emergency access to the Strategic Petroleum Reserve so that we can submit a special bid for oil during a declared emergency.
The oil price from the Strategic Petroleum Reserve would equal the average of all SPR bids accepted by the Department of Energy. This bill also permits Hawaii to enter into an exchange agreement directing the SPR oil to be delivered to locations other than Hawaii.
Another important provision in this bill is the biodiesel amendment. This provision should be important to all farmers and people concerned about the environment. Biodiesel is a renewable alternative fuel derived from vegetable oil or animal fat. It can be made from soybeans, canola, and even waste oils from fast food restaurants.
Biodiesel fuel has many advantages. It is nontoxic. It can cut emissions of particulate matter and hydrocarbons in half. It can also reduce greenhouse gas emissions. Most important, biodiesel can reduce our national reliance on foreign oil.
Biodiesel can be used directly in bus, truck, and marine vessel diesel engines. It does not require new refueling stations, new parts or expensive engine modifications.
Islands are particularly suited to the manufacture of biodiesel fuels, as shown by Pacific Biodiesel. All islands have a difficult time disposing of waste products since landfill space is limited. On the islands of Hawaii, used cooking oils were unnecessarily taking up landfill space. Pacific Biodiesel currently processes 10,000 gallons of used cooking oil each month into premium biodiesel fuel. Many of the hotel buses in Hawaii now use biodiesel fuel that is produced by Pacific Biodiesel. Boats in the marinas are also using this high-
quality fuel.
The amendments to this bill will protect Hawaii from an energy crisis. They will also help our farmers and our environment. I urge my colleagues to support S. 417.
Ms. McCARTHY of Missouri. Mr. Speaker, I rise in support of S. 417 as amended by the Senate last week. This legislation, a companion to H.R. 4017 of which I am a co-sponsor, represents a bipartisan, bicameral, win-win solution for communities like Kansas City which currently find it cost-prohibitive to comply with the requirements of the Energy Policy Act.
On September 29, 1998, the day after H.R. 4017 passed the House, I participated in a Forum on Transportation, sponsored jointly by the Kansas City Chamber of Commerce and the Mid America Regional Council. When I shared with the Forum participants the news of our success with H.R. 4017 in the House, they were very excited about the opportunities this legislation would present for the use of biodiesel products in metropolitan transportation fleets and for the growth of associated markets, such as agricultural waste products and soybean products.
S. 417 is a step in the right direction--for cleaner air, for less dependence on foreign petroleum, for opening up new markets for indigenous energy use, and for cost-effective compliance with EPAct standards. I urge my colleagues to support this measure. Thank you.
Mr. DINGELL. Mr. Speaker, I am pleased to support S. 417, which incorporates legislation previously reported by the House as well as several new provisions added by the Senate. The bill is companion legislation to H.R. 2472, which was signed into law by the President earlier this year and reauthorized other provisions of the Energy Policy and Conservation Act (EPCA).
The measure before us today reauthorizes several other EPCA programs pertaining to energy conservation for a period of five years. The bill makes needed technical changes to EPCA, the National Energy Conservation Policy Act, and the Energy Conservation and Production Act. In addition, the bill authorizes legislative and judicial branch entities to enter into Energy Savings Performance Contracts and extends a provision of the Defense Production Act of 1950 granting the President priority contracting authority for projects which maximize domestic energy supplies in times of emergency.
In addition to these important reauthorizations, S. 417 amends the Energy Policy Act of 1992 to help biodiesel blended fuel a more attractive option as a replacement fuel. This bipartisan amendment, coauthored by Representative Shimkus and Representative Karen McCarthy, will reduce emissions of carbon dioxide and air pollutants.
The legislation also reauthorizes a program initiated under the Energy Policy Act of 1992 to promote energy resource development on Indian reservations, and amends that Act to facilitate the continued clean up of a contaminated thorium site in West Chicago, Illinois.
Finally, the legislation amends EPCA to provide the State of Hawaii special access to the Strategic Petroleum Reserve (SPR) during a declared oil supply emergency. Agreement to include this provision would not have been achieved without the tireless efforts of Mr. Abercrombie, who brought this issue to our attention and helped forge a consensus.
Hawaii depends entirely on oil imports for electric generation, and this provision is critical to ensuring its citizens' well-being during an oil supply emergency. The legislation authorizes Hawaii to submit a special bid for SPR oil during a declared oil emergency, and to purchase the oil at the average price of other bids accepted by the Department of Energy.
Of course, other parties also are entitled to bid on SPR oil in an emergency, and the Secretary of Energy may limit the amount of oil made available to Hawaii under this measure. Finally, in keeping with other provisions in ERCA, the bill allows Hawaii to enter into an exchange agreement directing that SPR oil be delivered to locations other than Hawaii. The right to exchange SPR oil, however, is conditioned on the obligation to deliver oil of similar quantity to Hawaii. This will help ensure that the benefits reach the citizens of Hawaii, rather than speculators who might wish to resell SPR oil for great profit on the open market.
I commend my colleagues on both sides of the aisle for their cooperation in crafting and reaching agreement on this important legislation, and urge my colleagues to support the bill.
Mr. HALL of Texas. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.
Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Ballenger). The question is on the motion offered by the gentleman from Colorado (Mr. Dan Schaefer) that the House suspend the rules and concur in the Senate amendment to the House amendments to the Senate bill, S. 417.
The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the Senate amendment to the House amendments was concurred in.
A motion to reconsider was laid on the table.
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