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Energy

Congress currently is undertaking a vigorous debate over how Americans will meet their energy needs in the future. High gasoline prices earlier this year, combined with periodic power blackouts and extremely high energy prices in California, brought energy issues to the attention of Congress and consumers. The ongoing debate over climate change also has sensitized Americans to the environmental consequences of our energy choices. The questions is, how should Congress and the nation respond, so that we can prevent these problems from occurring in the future?

We need a plan that increases environmentally responsible oil and gas production, diversifies our nation's energy consumption through greater use of renewable energy, like ethanol and wind, and promotes greater fuel efficiency and energy conservation. Earlier this spring the Administration published its recommendations for a national energy policy, which focused on efforts to increase production of energy, including drilling for oil and gas in the Arctic National Wildlife Refuge (ANWR). Subsequently, the House of Representatives passed its energy plan, which called for drilling in ANWR, and provided tax incentives for a variety of energy production and conservation activities. I've asked the chairmen of key Senate committees to prepare legislation dealing with a range of energy-related topics, so that the full Senate can consider these issues during the fall.

Daschle Goals: Congress should adopt an energy strategy that achieves four basic goals and has asked Senate committee chairmen to write legislation that meets the following criteria. Electricity and transportation fuels should be:

  • Affordable
  • Reliable
  • Clean
  • Used Efficiently


ISSUES:


Fuel Prices:
Many Americans are struggling to pay high gasoline and natural gas bills. The Bush Administration and Congress need to address this problem sooner, rather than later. As the Senate debates this issue, it is my hope that we can develop constructive, bipartisan policies to provide American consumers with a long-term supply of affordable energy.

If you are interested in learning more about fuel prices, you may want to visit the following links. They will take you to Department of Energy fact sheets designed to help consumers understand how the prices of various fuels are determined on the open market. In addition, there is information on how supply disruptions have led to the severe price spikes in energy prices we've seen in recent years.


Ethanol and Biodiesel Fuel: We need to expand the use of ethanol and biodiesel fuel, and I have worked to promote the use of renewable fuels sine I first entered Congress in 1979. Three examples of major efforts I've pursued are:

  • 1990: reformulated gasoline provisions of the Clean Air Act established an oxygen requirement for certain gasoline and led to higher demand for clean-burning ethanol.
  • 1997: extension of the ethanol tax incentives until 2007.
  • Currently: establishment of a renewable fuels requirement for all the nation's gasoline. (With Senator Richard Lugar (R-IN) and Senator Tim Johnson (D-SD), I've introduced S. 670, which would triple the amount of renewable ethanol and biodiesel in the nation's gasoline over ten years.)

The ethanol industry is growing considerably, and new plants are being constructed. In South Dakota alone, ethanol production is expected to grow from 30 million gallons per year to over 200 million gallons per year by 2003. For more information, please visit the web site of the American Coalition for Ethanol.


Renewable Power:
The development of renewable power projects, such as wind, solar, biomass, and geothermal, throughout the nation is critical to our long-term energy strategy. Renewable power can be produced without the serious air quality and global warming impacts associated with fossil fuels, and the United States has enormous renewable resources that, if utilized, could provide for a majority of our electricity needs. In South Dakota and in many parts of the western and northeastern United States, we have enormous wind resources. For more information on renewable energy, visit the Department of Energy's National Renewable Energy Laboratory's website.

To help foster the development of wind power, we need to extend the wind power tax incentives and establish tax incentives for the development and generation of solar, geothermal, and biomass projects. Earlier this year, I introduced S. 596, which will provide tax incentives for installation and use of these technologies.


Energy Efficiency:
The United States has enormous potential to save energy through investments in energy-efficient technologies. For example, a 2000 study by the Department of Energy, entitled "Scenarios for a Clean Energy Future," concluded that over the next 20 years the United States could reduce its energy use by 20 percent from projected increases, saving over $120 billion per year in energy costs and cutting greenhouse gas emissions by about one-third. We should take full advantage of these opportunities, and that's why the Democratic energy bill, S. 596, includes numerous tax incentives toward that end. For more information about energy-efficient technologies, visit the U.S. Department of Energy's web site and the web site of the Alliance to Save Energy.


Clean Coal:
Coal provides a large share of America's energy needs and will continue to do so long into the future. Coal plays an important role in meeting our nation's energy needs, and I will support policies that promote its use in the most efficient and clean manner. Through a combination of tax incentives, clean coal research and development funding, and Clean Air Act restrictions – including the four pollutants contemplated by legislation pending before the Senate Environment Committee (SOx, NOx, mercury, and carbon dioxide) – I hope we can develop a program that environmentalists, the coal industry, and utilities can agree on to use coal more cleanly and efficiently.


Oil and Gas:
Oil and gas provide much of the energy needed to run our automobiles and heat our homes and it is important that Americans have reliable, affordable supplies of these fuels. We need increased oil and gas production, and, again, S. 596, the Democratic energy bill, includes tax incentives for this purpose. We should also take additional steps to use oil and gas more efficiently. For example, corporate average fuel economy (CAFÉ) standards for cars, sport utility vehicles, and light trucks should be increased to reduce reliance on foreign oil, save consumers money on fuel bills, and cut emissions of greenhouse gases.


Arctic National Wildlife Refuge:
The debate over drilling in the Arctic National Wildlife Refuge has taken center stage during the ongoing effort by Congress to develop a national energy strategy. In the spring of 2001, President Bush proposed drilling in the refuge as part of his energy policy. Subsequently, the House of Representatives voted to allow drilling in 2000 acres of the refuge.

Having weighed the environmental risks of drilling in the refuge, and the predictions of oil volumes that could be recovered economically from the refuge, I have decided to oppose efforts to drill in the refuge. The risks to caribou, polar bears, and other local wildlife, as well as the precedent for oil exploration in our nation's wildlife refuges, outweigh the small amount of oil that is likely to be recovered. A bipartisan group of senators who share that belief will join in the effort to ensure that the national energy policy developed by Congress does not allow drilling in the refuge.


Climate Change:
Evidence that emissions of greenhouse gases, primarily caused by burning fossil fuels, are contributing to global climate change continues to grow. The Intergovernmental Panel on Climate Change (IPCC) has concluded that "there is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities" and that the Earth's average temperature can be expected to rise between 2.5 and 10.4 degrees Fahrenheit in this century. The National Academy of Sciences confirmed the findings of the IPCC in its June 6, 2001 report, stating that "the IPCC's conclusion that most of the observed warming of the last 50 years is likely to have been due to the increase of greenhouse gas concentrations accurately reflects the current thinking of the scientific community on this issue" and that "there is general agreement that the observed warming is real and particularly strong within the past twenty years."

The consequences of climate change most likely will be serious. The Environmental Protection Agency has found that global warming may harm the United States by altering crop yields, accelerating sea level rise, and increasing the spread of tropical infectious diseases.

The development of international agreements to reduce emissions of greenhouse gases is critical to addressing this situation. In July, 1997, I voted for Senate Resolution 98, which expressed the sentiment that developing nations, especially the largest emitters, must also be included in any future, binding climate change treaty and that such a treaty must not result in serious harm to the United States economy.

Unfortunately, instead of working with other nations to negotiate changes to the Kyoto Protocol that would be consistent with Senate Resolution 98, President Bush rejected the protocol and refused to participate in negotiations in Bonn, Germany during July, 2001, when 180 nations agreed to the rules implementing the protocol. In addition, the energy plan proposed by the Administration would increase greenhouse gases by 35 percent, according to the Natural Resources Defense Council report "Slower, Costlier and Dirtier: A Critique of the Bush Energy Plan."

Dissatisfaction with the Administration's unwillingness to engage in the Kyoto process is growing. On August 3, 2001, the Senate Foreign Relations Committee voted unanimously for a Sense of the Congress resolution calling on the Administration to demonstrate international leadership in meeting the challenge of climate change. Specifically, the resolution says that the United States should take responsible action to ensure significant and meaningful reductions in emissions of greenhouse gases. It also calls on the Administration to participate in international negotiations, including putting forth a proposal at the next meeting of the international community, with the objective of securing the United States' participation in a revised Kyoto Protocol or other future binding climate change agreements.

I strongly support this resolution and other efforts in Congress to reduce our emissions of greenhouse gases, including legislation introduced by Senators Byrd and Stevens, S. 1008, which authorizes nearly $5 billion over ten years to address the challenge of global warming. That legislation recently was approved by the Senate Governmental Affairs Committee. I'll be working with key Senate committees to produce an energy policy for the nation that reduces emissions of greenhouse gases.