Mr. President. Today the Senate begins consideration of S. 14, the National Energy Policy Act of 2003.
This is the first time in my 31 years in the U.S. Senate that I have been the Chairman of an authorizing Committee responsible for moving an authorizing Bill through the legislative process toward its eventual enactment.
I am delighted that my opportunity has come on an energy Bill.
Energy is one of the most fundamental underpinnings of the U.S. economy – its price and availability affect all subsequent prices in the U.S. market and without adequate, affordable supplies, our economy and standard of living would collapse.
The United States has been well served through its history by the regulated free market we maintain. Regulations have ensured the availability of energy, its safety, and a reliable predictable supply.
On the other hand, we have been wise not to overburden our private sector energy companies and the entrepreneurs that run them so that they become over-regulated and inefficient. Such a move would send ripples throughout our economy.
But we also recognize, and you will see this theme throughout S. 14, that the federal government has a role to play; not by limiting or mandating choices but by encouraging a diversity of options – additional, competitive technologies that can contribute to a diverse, robust energy supply.
We do not know what the future may bring. We do not know how that future may impact the availability of energy:
• Will OPEC move to effectively limit production and drive up oil prices in a sustained way?
• Will the developing world’s demand for energy increase at such a rate as to drive up world prices?
• Will future environmental regulation severely limit our use of fossil fuels?
• Will some technology breakthrough change the way in which we power our transportation sector or transmit electricity?
Our national energy policy needs to be demonstrably sound enough to withstand any one of these and other threats to our energy supply. Producers and manufacturers, when they decide where to build plants, need to know that the U.S. maintains the world’s best energy generation and distribution system and that it provides the U.S. with a competitive advantage over the rest of the world.
Our citizens need to know that they can with some reasonable level of assurance budget what their annual heating and cooling costs will be.
This is not an area in which we can have much tolerance for those who propound politically correct policies.
Let me be blunt, I am a strong supporter of solar and renewable energy. As Chairman of the Appropriations Committee’s Subcommittee on Energy and Water Development, I have supported hundred of millions and billions of dollars of research to develop less expensive solar and renewable energy technologies. But they only represent a niche market – they are not capable of providing base-load power to our cities, hospitals, and factories.
So the bill before the Senate today is comprehensive. It encourages the conservation of energy through efficiency programs, but it also makes steps to ensure reliable and cleaner production of electricity from coal, nuclear, and gas and to decrease our reliance on imported energy sources by increasing production at home.
The Bill is also pragmatic. I am a strong supporter of opening ANWR. I believe oil and gas can be produced from ANWR with a minimal impact on the environment and a substantial, positive impact on U.S. energy security and prices.
Those who say we should do without ANWR production are cavalier about our energy needs. ANWR holds estimated reserves of equal to or three times as much oil as the entire State of Texas. I know of no one who proposes we close all production in Texas on behalf of the environment – the impact on our economy is too easy to predict. But, somehow, they get away with arguing against ANWR.
However, I have not included ANWR in this Bill, even though I understand there were the votes on the Energy Committee to do so, because I know the 60 votes are not here on the floor to break a filibuster. I think that is a shame, but I also am not about to sacrifice a broader energy policy over that single, though important issue.
In Committee, we also deferred to the floor a debate over climate change. I know the debate is coming, and I saw no reason in consuming the time of the Committee on a matter sure to be reconsidered on the floor.
Recognizing that we agreed to defer some controversial issues to the floor, it is important for the Senate to recognize that the Bill before it is the product of several years of work by the Energy Committee.
This is very much a bipartisan measure.
Earlier this year, I instructed our Committee staff to circulate a staff draft of legislation that would incorporate the provisions and ideas that had been considered by the Senate and the conference held last year on H.R. 4.
We then worked with our Minority and all the Members of the Committee to refine that text. Members on both sides of the aisle had constructive comments and recommendations.
While we could not always agree, I don’t think there is any Member of this body who can say that I and the Committee staff were not open to suggestion or willing to work to clear potential amendments.
The end result of the process was a series of Chairman’s Marks on the various titles of the legislation before you.
While the media only comments on the matters where we could not reach agreement, I think it is accurate to say that every Member of the Committee had provisions that are very important to them that were included in the Chairman’s Mark and cleared on a bipartisan basis.
An enormous amount of work and careful perfecting of language was done on a bipartisan basis before the Chairman’s Mark was circulated.
I also think that my colleagues will agree that we followed an open process.
I insisted that the Chairman’s Mark of each Title be circulated at least 48 hours in advance. That was followed uniformly.
The most contentious issue was electricity, and in that case I circulated a Chairman’s Mark a full week in advance. Achieving a consensus on that title proved more than elusive.
In the end, the Republican Members of the Committee reached agreement on an electricity Title that is included in the legislation before the Senate.
I sincerely hope that this important legislation does not become wrapped up in partisan delay tactics.
I know there has been speculation in the media that the Democrats want to deny President Bush his energy bill. This is not President Bush’s energy bill. This is not Pete Domenici’s energy bill. At the moment, what you have before you is the recommendation of your Committee on Energy and Natural Resources and I am proud to bring it before you.
This bill contains numerous provisions that had bipartisan support. Many were initiatives offered by my colleagues on the other side of the aisle that I was happy to support.
Senator Akaka, for example, made major contributions to the Hydrogen title as did Senator Dorgan and others. While the President has provided important support for Hydrogen, for which I congratulate him, I want to make clear that what the Senate has before them is a comprehensive Hydrogen titled crafted over many weeks on a bipartisan basis by your Committee.
The same can be said for all the titles. Not one title is the same as the original staff discussion draft. In every case, I included amendments in my Chairman’s Mark that were suggested by my colleagues – both Democrat and Republican.
The extent of that bipartisan consensus was not evident in our business meetings, where attention obviously was on provisions where we could not come together, but in fact this legislation is bipartisan in its substance.
I expect to fully support other amendments here on the floor that will have bipartisan support, such as a carbon sequestration provision that Senators Wyden and Craig have been working on together.
Now let me summarize the twelve Titles of this Bill:
The Oil and Gas Title:
• Permanently reauthorizes the Strategic Petroleum Reserve;
• Provides production incentives for marginal wells so that those sources will continue to be produced;
• It provides royalty relief for production in the extremely deep waters of the Gulf of Mexico and for natural gas production in those areas of the Gulf that are beyond 15,000 feet deep;
• Creates a pilot program in five regional BLM offices to coordinate all the federal permitting necessary to produce on federal land, and;
• Authorizes to construction of the Alaska Natural Gas Pipeline.
The Coal Title:
• Authorizes $2 billion for the clean coal technology program.
The Indian Energy Title:
• Authorizes Indian Tribes to enter into an agreement with the Secretary of the Interior to develop their energy resources. Once that agreement is in place, the Tribe can enter into leases for production on their Tribal lands with the same rights as if they were private land-owners.
The Nuclear Energy Title:
• Permanently reauthorizes Price-Anderson;
• Authorizes funds for the Advanced Fuel Cycle Initiative to develop ways to reduce the volume and toxicity of spent nuclear fuel;
• Authorizes the Secretary of Energy, and subject to appropriations, to provide loan guarantees to assist in the construction of up to 8,400 Megawatts of new, nuclear power if the Secretary determines the plants are necessary for energy diversity, security, or clean air attainment.
• Directs that an advanced reactor will be built in Idaho to demonstrate new safety, efficiency, and proliferation resistance and to produce hydrogen.
The Renewable Energy Title:
• Mandates that the federal government will purchase 7.5 percent of its energy requirements from renewable resources by 2011;
• Authorizes the Renewable Energy Production Incentive program;
• Streamlines the relicensing of hydroelectric facilities;
• Encourages the exploration and development of geothermal resources, and;
• Provides grants for turning forest materials from areas at high risk of fire or disease into biomass energy.
The Energy Efficiency Title:
• Requires a 20 percent improvement in federal energy efficiency over the next 10 years;
• Authorizes grants for energy efficient projects in low-income, urban and rural areas;
• Sets several new efficiency standards for items such as transformers, compact fluorescent lamps, ceiling fans, and commercial refrigerators and freezers.
The Transportation Title:
• Encourages the use of alternative fueled vehicles;
• Requires federal agencies to increase the fuel efficiency of their fleets by 3 miles per gallon by 2005;
• Improves the efficiency of locomotives, and;
• Expands the authority of the National Highway Transportation Safety Administration to set fuel economy standards for cars and light trucks, taking into account passenger safety and the impact on U.S. employment.
The Hydrogen Title:
• Authorizes $1.8 billion for the President’s Hydrogen Fuel Cell Initiative to develop clean, renewable hydrogen cars.
• Reauthorizes and increases funding for existing hydrogen research programs
• Amends the Energy Policy Act of 1992 to require agencies to purchase 5 percent of new vehicles as hydrogen-powered vehicles in 2006 and 2007, increasing to 20 percent in subsequent years.
The Research and Development Title:
• Addresses research and development needs to energy efficiency, distributed energy and electric energy systems, renewable energy, nuclear energy, fossil energy, Science and energy and environment and management.
• Funding for research in many areas, such as nanotechnology, high temperature superconductivity and Genomes to Life
• A new Under Secretary position for energy and science
• Two new Assistant Secretary positions: one for science and one for nuclear energy
The Personnel and Training Title:
• Contains a number of programs to ensure that we have an adequate energy workforce in the decades to come.
The Electricity Title:
• Remands proposed rulemaking on Standard Market Design and prohibits FERC from issuing a final order until July 1, 2005.
• Provides a Sense of the Cogress that membership in Regional Transmission Organizations is voluntary
• Amends the Federal Power Act to protect access to transmission lines
• Repeals PURPA’s mandatory purchase requirement
• Repeals Public Utility Holding Company Act
• Makes the electricity market more transparent and resistant to manipulation
• Increases penalty for violations of the Federal Power Act and the Natural Gas Act
Mr President, I understand that there is an agreement that no amendments will be offered until Thursday.
On Thursday, I expect an Ethanol amendment to be offered, and I understand there an discussions underway as to who will offer that amendment and when.
For my part, I support the agreement reached last year on ethanol that was reported out of the Environment and Public Works Committee last month.
I know there are some who oppose that proposal and will offer many amendments – I look forward to that debate and encourage my colleagues who support the ethanol proposal to offer their amendment as early as possible on Thursday.
My staff and Senator Bingaman’s staff is on the floor and available now to begin the process of reviewing and clearing amendments where possible. I hope Members will take advantage of that and bring their amendment to the floor as soon as possible.