[Page: S11419]
---

   Mr. AKAKA. Mr. President, I rise today to talk about an issue which has, of late, affected the lives of all Americans. I am talking about rising energy costs. All indications suggest that America's summer of discontent is going to continue and become the winter of discontent with respect to energy prices. Americans have paid recordbreaking prices at the pump this summer. They will continue to suffer escalating prices this winter, too. Higher energy prices hit most those Americans who can afford it the least. But more important, the findings of an international panel of scientists has concluded that man-made greenhouse gases are altering the atmosphere in ways that affect earth's climate.

   The World Meteorological Organization and the United Nations Environment Program established the Intergovernmental Panel on Climate Change (IPCC) in 1988. The function of IPCC is to assess available information on the science, impacts, and crosscutting economic issues related to climate change, in particular a possible global warming induced by human activities. The IPCC completed its first assessment report in August 1990 which indicated with certainty an increase in the concentration of greenhouse gases due to the human activity. The report assisted the governments of many countries in making important policy decisions, in negotiating, and in the eventual implementation of the UN Framework Convention on Climate Change which was signed by 166 countries at the UN Conference on Environment and Development at Rio de Janeiro in 1992. The convention was ratified in December 1993 and took effect on 21 March 1994. IPCC also issued another assessment in 1995.

   I find the conclusions of the panel's latest assessment alarming. One of its most striking findings is its conclusion that the upper range of warming over the next century could be even higher than the panel's 1995 estimates.

   The evidence of increasing warming has shown up in different places--retreating glaciers and snow packs, thinning polar ice, and warmer nights. There is a growing consensus that humans are playing a significant role in climate change. Even some of those who dissent from the view that human activity is altering the climate concede that human influence on the earth's climate is established.

   I rise today, in the closing days of the 106th Congress, to urge all interested organizations and individuals to begin working now to address energy issues early in the next Congress. We have two distinct problems to address. First, we must ensure that Americans continue to enjoy reasonably priced energy now and in the future. Second, we must work on the development of environmentally sound solutions to our energy problem in the mid- to long-term timeframe.

   In the last few months we have had several hearings on electricity restructuring, oil prices, supply and demand, gasoline price hikes, natural gas, and the Strategic Petroleum Reserve. All these hearings point to one thing--that we have problems with our energy picture, and they need to be fixed, and fixed soon.

   Our energy problem has been in the making for a long time. For the last thirty years, we have had several energy crises. The reasons for all of these crises were the same: actions and crises in the Middle East, rising American demand, bigger cars, and so on. The crisis this year is no different. Whenever the Middle East sneezes, Americans catch cold. American pockets books have suffered these periodic colds. But the people of Hawaii have suffered a long and almost interminable cold. Throughout the 1990's, Hawaii has been the number one state in terms of gas prices at the pump. It relinquished this dubious honor to states in the Midwest this summer. This has to stop. We must ensure that Americans get energy at reasonable prices.

   Our import dependence has been rising for the past two decades. The combination of lower domestic production and increased demand has led to imports making up a larger share of total oil consumed in the United States. Last year crude oil imports amounted for 58 percent of our oil demand. Oil imports will exceed 60 percent of total demand this year. Imports will constitute 66 percent of the U.S. supply by 2010, and more than 71 percent by 2020. Continued reliance on such large quantities of imported oil will frustrate our efforts to develop a national energy policy and set the stage for energy emergencies in the future.

   Transportation demands on imported oil remain as strong as ever. Since the oil shock of the 1970s, all major energy consuming sectors of our economy with the exception of transportation have significantly reduced their dependence on oil. The transportation sector remains almost totally dependent on oil-based motor fuels. The fuel efficiency of our vehicles needs to be improved.

   U.S. natural gas demand in the last decades has increased significantly. It is expected to grow by more than 30 percent over the next decade. Demand for natural gas from each of the major consuming sectors--residential, commercial, industrial, and electricity generation will increase. Electricity generation accounts for the lion's share of this increase at 50 percent of the increase.

   We are facing problems on both sides of the supply and demand equation. Worldwide supplies of available energy sources are getting tighter and demand is increasing. This only means that unless one side of the equation changes, we will continue to have energy problems.

   We cannot look at our energy sources in a piecemeal fashion. We will have to take a comprehensive look at all aspects of our energy picture. The only way to deal with our energy problem is to have a multifaceted energy strategy and remain committed to that strategy. We must adopt energy conservation, encourage energy efficiency, and support renewable energy programs. Above all, we must develop energy resources that diversify our energy mix and strengthen our energy security.

   I urge all interested organizations and individuals to work together to strengthen our energy policy, an energy policy that serves the American public.

   In the short term, we can do this by building upon a lot of good work that has already been done. Initiatives such as the deep water royalty incentives proposed by our former colleague, Senator Bennett Johnston and supported by the Administration have been major contributors to the 65 percent increase in offshore oil production under this Administration. Policies that led to the increases in natural gas production in deep waters by 80 percent in just the past two years are welcome. Natural gas production on Federal lands has increased by nearly 60 percent since 1992. This is a good sign that we are able to utilize our national resources in an environmentally responsible manner.

   Initiatives such as the Interagency Working Group on Natural Gas, the Federal Leadership Forum to address environmental review processes, a resource assessment for Wyoming oil and gas, and technology partnering with the Bureau of Land Management to improve access to Federal lands will provide increased energy resources.

   In 1998, DOE and the Occidental Petroleum Corporation, concluded the largest divestiture of federal property in the history of the U.S. government. The sale of Elk Hills Naval Petroleum Reserve in California for $3.65 billion underscored the Clinton Administration's faith in the private sector to carry responsible development of the 11th largest of the Nation's oil and gas fields.

   The Clinton Administration has proposed several tax incentives to encourage new domestic exploration and production and to lower the business costs of the producers when oil prices are

[Page: S11420]

   The Administration has also advanced legislation to address the issue of restructuring the electric utility industry. A number of other restructuring proposals have been made. The electric utility industry is an integral part of the overall energy supply and demand equation.

   The restructuring that we are talking about essentially involves the lower 48 States that are contiguous. Some may ask what is in it for Hawaii? It is not connected to the national grid. The answer is simple. Hawaii imports from the Mainland a vast portion of goods and services it consumes. Reduction in production costs on the Mainland because of competition unleashed by electric utility industry restructuring would benefit the people of Hawaii.

   We can build upon the Clinton Administration's accomplishments. Its strategically focused energy policy encompasses economic, environmental, and national security considerations. It is a balanced approach.

   The effects of major global climate change on the U.S. and the rest of the world will be

   devastating. I will take a few minutes here to describe the effect of climate change on Hawaii. Being a state consisting of islands with limited land mass, we are, as we must be, sensitive to global climate changes. We are tropical paradise and we would like to stay that way. But the worldwide problem of greenhouse gases threatens our well-being.

   Honolulu's average temperature has increased by 4.4 degrees over the last century. Rainfall has decreased by about 20 percent over the past 90 years. By 2100, average temperatures in Hawaii could increase by one to five degrees Fahrenheit in all seasons and slightly more in the fall. New data may revise this estimation upward.

   Estimates for future rainfall are highly uncertain because reliable projections of El Nin 6o do not exist. It is possible that large precipitation increases could occur in the summer and fall. It is also not yet clear how the intensity of hurricanes might be affected.

   The health of Hawaii's people may be negatively affected by climate change. Higher temperatures may lead to greater numbers of heat-related deaths and illnesses. Increased respiratory illnesses may result due to greater ground-level ozone. Increased use of air conditioning could increase power plant emissions and air pollution. Viral and bacterial contamination of fish and shellfish habitats could also cause human illness. Expansion of the habitat and infectivity of disease-carrying insects could increase the potential for diseases such as malaria and dengue fever.

   In Honolulu, Nawiliwili, and Hilo, the sea level has increased six to fourteen inches in the last century and is likely to rise another 17 to 25 inches by 2100. The expected rise in the sea level could cause flooding of low-lying property, loss of coastal wetlands, beach erosion, saltwater contamination of drinking water, and damage to coastal roads and bridges. During storms, coastal areas would be increasingly vulnerable to flooding.

   Agriculture might be enhanced by climate change, unless droughts decrease water supplies. Forests may find adapting to climate change more difficult. For example, `ohi'a trees are sensitive to drought and heavy rains. Changes could disproportionately stress native tree species because nonnative species are more tolerant of temperature and rainfall changes. Climatic stress on trees also makes them vulnerable to fungal and insect pests.

   Hawaii's diverse environment and geographic isolation have resulted in a great variety of native species found only in Hawaii. However, 70 percent of U.S. extinctions of species have occurred in Hawaii, and many species are endangered. Climate change would add another threat. Higher temperatures could also cause coral bleaching and the death of coral reefs.

   Hawaii's economy could also be hurt if the combination of higher temperatures, changes in weather, and the effects of sea level rise on beaches make Hawaii less attractive to visitors. Adapting to the sea level rise could be very expensive, as it may necessitate the protection or relocation of coastal structures to prevent their damage or destruction.

   We have to address the problems that may be created by the climate change and the sooner we start on this the better off we will be. We would have to invest in the development of new technologies that will provide new and environmentally friendly sources of energy, newer and environmentally friendly technologies that allow use of conventional energy sources. We would have to work closely with other nations in a cooperative manner. We can help the rest of the world through our well known technological prowess.

   Our energy policy for the 21st century requires forward thinking. Sustainable economic growth requires a sustainable energy policy. In an era with revolutionary changes in communications and information technologies, information exchange, interdependent trade, the world economies are becoming increasingly globalized. Our challenge will be to sustain this global economy while enhancing the global environment. Our energy challenge will be to formulate and implement policies that provide not only the U.S. but all nations with reasonably priced energy.

   We need fundamentally different sources of energy for the 21st century. Hydrogen is one such energy source. The long-term vision for hydrogen energy is that sometime well into the 21st century, hydrogen will join electricity as one of our Nation's primary energy carriers, and hydrogen will ultimately be produced from renewable sources. But fossil fuels, especially natural gas, will be a significant long-term transitional resource. In the next twenty years, increasing concerns about global climate changes and energy security concerns will help bring about penetration of hydrogen in several niche markets. The growth of fuel cell technology will allow the introduction of hydrogen in both the transportation and electricity sectors.

   We are a long way from realizing this vision for hydrogen energy. But progress is being made and many challenges and barriers remain. Sustained effort is the only way to overcome these challenges and barriers. We need to support a strategy that focuses on midterm and long-term goals.

   While we develop suitable technologies for using this clean source of energy, we can rely on other clean sources such as natural gas. Natural gas is a good choice for the fuel of the future. It is safe and reliable to deliver, more environmentally friendly than oil, and more than three times as energy-efficient as electricity from the point of origin to point of use. There are other potential sources of clean energy such as methane hydrates that need to be explored and developed.

   We need to unleash American ingenuity to find solutions to our energy problem. This Senator is convinced that we can do this only when we have a national commitment to, and a strategy for technological advancement as part of national energy policy. Only a national commitment will help us maintain a sustainable economic growth while protecting environmental values. We should recognize that there is a growing intersection between national economy, environment, and energy. If we ignore energy policy, then we only imperil our economy and national security.

   I want to compliment my friends, Senators MURKOWSKI and BINGAMAN, the Chairman and Ranking Member of the Senate Energy Committee for the great effort that they put into educating us all and trying to build a consensus on very difficult issues. Our Senate Energy Committee has committed a great deal of time in discussing our energy problems. I believe the time has come for us to act. I am committed to help move the energy agenda with alacrity in the coming Congress.

   In the coming session, we must try to move legislation that encourages, adopts, and strengthens energy conservation. We must encourage energy efficiency, and support renewable energy programs. Above all, we must formulate and advance policies that encourage the development of energy resources that diversify our energy mix and strengthen our energy security without sacrificing the environment.

   We have had eight long years of unparalleled economic growth. The

[Page: S11421]

END