I am proud to be U.S. Senator from the state leading the nation in renewable fuels like ethanol and biodiesel and playing a leadership role in renewable energy sources such as wind and biomass. Minnesota farm families are feeding the world – and are now working to fuel a nation.
It is not enough anymore to simply discuss our foreign oil dependence problem in the abstract. The reality is that we must strive to break our foreign energy dependence or risk losing our autonomy.
Our nation’s energy dependence is undeniably the greatest threat to our economy, our security, and our freedom. By 2025 it is estimated that nearly 75 percent of America’s oil supply will be imported. Also consider that two-thirds of the world’s proven oil reserves are in the Middle East and that terrorists have identified oil as a strategic vulnerability -- increasing attacks against oil infrastructure worldwide. One can just imagine what would happen if OPEC, which currently accounts for well over 50 percent of our oil supplies, shut off the oil spigot. Oil dependency also carries serious economic implications. The total economic penalty of our oil dependence, including loss of jobs, output, and tax revenue, is estimated to exceed $300 billion annually.
Since taking office, I have worked for policies that strengthen America’s ability to produce clean, reliable energy here at home. The solution to our energy dependence woes lies in bold action: we must promote renewable fuels by providing farmers the support they need to grow fuel, ensure the availability of E-85 gas pumps and flex-fuel vehicles, and set aggressive, achievable standards for renewable fuel production – beginning with my proposed 10 percent renewable fuel requirement in 10 years.
To help put us on this path, I have introduced several bipartisan bills that will help make this vision a reality. The Vehicle and Fuel Choices for American Security Act (VFCASA) sets a goal of saving 2.5 million barrels of oil daily in 10 years - the amount we currently import from the Middle East – through increased renewable fuel use, more E-85 infrastructure, increased flex-fuel vehicle production, and common-sense energy conservation. The Transforming Energy Now (TEN) bill requires 10% of our fuel to be blended with ethanol in 10 years. I have also cosponsored legislation, the bipartisan Fuel Economy Reform Act, which seeks more flexible approach to increased Corporate Average Fuel Efficiency (CAFE) Standards.
Our cars are not the only place we can look to improve our energy situation through home grown innovation, which is why I have worked for energy policies that lower energy prices in our homes through energy efficiency technologies, expand wind energy development, and develop our domestic natural gas resources. The Home Energy Savings Incentives Act provides tax credits to homeowners for making energy saving upgrades such as efficient light bulbs, weather stripping or furnaces. While it’s important to protect our houses from the cold winds, it’s just as important to harness those winds for clean energy, which is why I pushed for tax credits to promote wind energy development in the Energy Policy Act of 2005 (EPAct). Recently, I have worked to prevent three wind energy projects in southwestern Minnesota from being held up by the Federal Aviation Administration (FAA). The clearance from the FAA authorized the construction of the projects and will allow the companies take advantage of the renewable production tax credit I worked for in EPAct. Additionally. we passed the Gulf of Mexico Energy Security Act of 2006, which will make available approximately 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas. This bill is one step toward solving our energy crisis, and will have a short and long term impact for Minnesotans dealing with high natural gas and oil prices.
Here are a few policies that I am pursuing to lead us on the path of energy independence:
Oil Conservation
My Vehicle and Fuel Choices for American Security Act (VFCASA) sets a standard for energy self-reliance. It directs the Office of Management and Budget to publish an action plan to save different amounts of oil per day, starting with 2.5 million barrels per day by 2016, roughly the same amount of oil currently imported from the Persian Gulf region. And that’s just the beginning. That number would increase to at least 7 million barrels per day by 2026 and 10 million barrels per day by 2031. These are bold and aggressive goals, but this bill creates an achievable plan for meeting these standards.
Promotion of Flex Fuel and Alternative Vehicles
Our nation’s free market is the best arena for the creation of fuel efficient vehicles. To encourage and spur innovative energy solutions, we must provide incentives. VFCASA includes tax credits for manufacturers to begin or expand production of advanced technology vehicles, and for consumers, the bill increases the tax credits available for the purchase of hybrid and advanced diesel vehicles. These incentives are coupled with requirements that 50 percent of the nation’s new vehicles be flex fuel or alternative fuel by 2016. To further promote the purchase of fuel-efficient vehicles, companies with fleets of 100 or more vehicles would receive tax incentives to add fuel efficient vehicles to their fleets.
The Fuel Economy Reform Act will improve fuel economy by having a target of a 4% annual increase in Corporate Average Fuel Economy (CAFE) standards, which will be mandated through the National Highway Traffic Safety Administration (NHTSA) and supported with manufacturer tax incentives. The National Academy of Sciences has determined the 4% rate can be reached each year. If the annual target is met for ten years, this bill will save 1.3 million barrels of oil per day and 20 billion gallons of gasoline per year. By 2028, Americans will have saved 549 billion gallons of gasoline.
I believe that we can do more to integrate flex fuel technology in the US market place. To that end, I am a co-sponsor of the Biofuels Security Act that requires all U.S. marketed vehicles to be flex fuel in 10 years.
Renewable Fuels Production
As we move away from energy sources in the Middle East, we must increase our efforts to take advantage of the fuels found and produced on Minnesota farms, including ethanol, biodiesel, wind energy and energy derived from livestock waste. The production and development of renewable fuels promotes the local economy, accommodates environmental standards and lessens our reliance on foreign energy. To capitalize on Minnesota’s abundant resources, VFCASA adds to the Renewable Fuel Standard by requiring that by 2008 an additional 100 million gallons of ethanol be derived from domestically grown sugarcane or sugar beets. Bringing sugar producers into the renewable fuels business will help meet the nation’s growing thirst for renewable fuels.
To accelerate the nation’s use of renewable fuels, I introduced The TEN Act that would require 10 percent of our nation’s fuel to be blended with renewable fuels in 10 years, and provide a strong E-85 infrastructure investment by increasing the E-85 infrastructure tax credit, using CAFE penalties for an alternative fuel infrastructure program at DOE, and creating a low interest loan and grant program at USDA for E-85 fueling stations.
E-85 Infrastructure
E-85 cannot become a reality without putting cars and trucks on the road that can use it – that’s why we need gas pumps dedicated to E-85. While Minnesota is a shining example of how E-85 can be integrated into the fuel distribution system, our nation’s overall E-85 infrastructure remains grossly inadequate. VFCASA will bring our renewable fuel infrastructure up to speed by increasing the ethanol infrastructure tax credit to 50 percent, authorizing loan guarantees through the Department of Agriculture to assist farmer-owned ethanol producers to develop and build infrastructure for E-85, and funding a new alternative fueling infrastructure grant program at the Department of Energy.
In addition, the Biofuels Security Act will require large oil companies who own fueling stations to have 5% of their stations have an E-85 pump next year and 50% within 10 years.
Home Energy Savings
In December 2005 I introduced legislation to help Minnesota families deal with high energy costs. The Home Energy Savings Incentives Act of 2005 will provide up to $5000 in tax credits to homeowners that make energy-saving upgrades to their homes after consultation with a qualified energy rater. In addition to encouraging energy conservation, I am also continuing in my efforts to ensure adequate funding for the Low Income Home Energy Assistance Program (LIHEAP).
Minnesota’s Leadership in Renewable Fuels Now and in the Future
* Ethanol: Nearly all of Minnesota’s 2.6 billion gallons of gasoline are blended with 10 percent ethanol. Minnesota boasts 16 ethanol plants, which are owned by Minnesota farm families from in and around the communities surrounding the plants in Marshall, Morris, Winnebago, Winthrop, Benson, Claremont, Bingham Lake, Buffalo Lake, Melrose, Preston, Luverne, Little Falls, Albert Lea, Atwater, Granite Falls, and Lake Crystal. Besides producing over 325 million gallons of ethanol per year, these plants produce some 40,000 jobs, over a half billion dollars a year in economic activity and $15 million in tax revenues.
* Biodiesel: Minnesota is the only state in the nation to date to enact a 2 percent biodiesel standard. As a result, a new farmer-owned soybean processing facility was recently built in Brewster, Minnesota that includes a 30 million gallon biodiesel production facility to meet the expected new demand. 2,400 hardworking farm families from the area invested more than $32 million toward the building of this $55 million plant – an operation that is projected to yield $390 million in economic activity and 2,176 jobs. I believe that we are only seeing the beginning of the endless potential of the biodiesel industry.
* Wind energy: Wind energy is also taking off in Minnesota with farm families working to both reduce their energy costs through wind energy production. Wind energy is the fastest growing energy producer in the world and Minnesota ranks second in the nation in total wind energy production with 115 facilities – 55 of them locally and farmer owned. In August 2003 I flipped the switch turning on the largest wind turbine in North America located near Dodge City, Minnesota. This turbine stands 300 feet tall and generates 1.65 megawatts of power. Soon, Trimont Area Wind farm LLC will utilize the same size turbine – 61 of them – to deliver 100 megawatts of power to Great River Energy Cooperative, which supplies power to many rural electric cooperatives across Minnesota.
* Energy from livestock: Energy derived from livestock is also very encouraging. I have seen it first hand in Princeton, Minnesota where a dairy farmer produces energy from livestock waste. The energy obtained from his 725 head herd is enough to power the homes of 85 of his neighbors.
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