Washington, DC—The Senate today passed an amendment backed by U.S. Senator Tim Johnson to preserve efforts by the Department of Defense (DOD) to expand its use of biofuels. The Johnson-supported amendment to the National Defense Authorization Act, which was also strongly supported by the DOD, removed a provision that would have made it much more difficult for the DOD to develop biofuels.

“The use of biofuels by our military helps us rely less on fossil fuels. Energy security is a national security issue,” said Johnson, Chairman of the Military Construction and Veterans Affairs Appropriations Subcommittee. “As I have discussed with Navy Secretary Ray Mabus, our military is making progress in diversifying our energy supplies. It is important that we continue this progress.”

The DOD consumed more than 355,000 barrels of oil per day in Fiscal Year 2011, which makes it the largest oil consumer in the world. Dependence on oil leaves the DOD vulnerable to major cost swings and weakened national security. Last year, oil price spikes required the Navy to pay $500 million more than it budgeted for fuel costs.

Johnson’s full Congressional Record statement on the amendment below:

Mr. President, I come to the floor today in strong support of amendment #3095 offered by Senator Hagan to strike Section 2823 from the National Defense Authorization Act.

Section 2823 would severely limit the Department of Defense’s ability to use alternative fuels to enhance our nation’s national security.  This section would needlessly prohibit the Department of Defense from entering into a contract to plan, design, refurbish, or construct a biofuels refinery or any other facility or infrastructure used to refine biofuels unless such planning, design, refurbishment, or construction is specifically authorized by law.

Under the authorities of the Defense Production Act (DPA), the Department of Defense has created the Advanced Drop-In Biofuels Production Project.  This initiative is focused on creating a public-private partnership that will provide incentives for private-sector investment in cost competitive, advanced biofuels production capability. This initiative requires at least a one-to-one cost share with private stakeholders.

In furtherance of this initiative, in August 2011, the Department of Navy, the Department of Agriculture and the Department of Energy signed a memorandum of understanding to invest $510 million, equally shared among them, for investments in the joint construction or retrofitting of plants and refineries to produce advanced biofuels.  Now is not the time to prevent this important program from continuing.  Before this project can be finalized, the President has to determine that this is essential to the national defense.  Only then will it go forward.  I am confident that this requirement in the DPA will ensure that only the most important projects for our national security will go forward. 

As Chairman of the Banking Committeee, which has jurisdiction over the DPA, I believe it is misguided to limit the authority of the Defense Department to continue with this project.  As the largest single customer of oil in the world, the Department of Defense spent $17 billion in FY2011 on fuel.  This dependency on a single source of energy forces the Department of Defense to reallocate funding from other critical needs when oil prices spike.  An increase of $1.00 in the price of oil costs the Department of Defense over $100 million.  Last year alone, spikes in oil prices required the Navy to pay an additional $500 million on higher fuel costs. 

The renewable fuels industry has played an important role in addressing our energy needs.  Unfortunately, Section 2823 would hinder our nation’s ability to promote renewable energy sources within our country.  By striking this provision, we will allow the Defense Department to retain its authority to take essential steps to diversify the energy sources available to our military.  I believe that energy security is an essential part of national security.  

I thank Senator Hagan for offering this amendment.  I urge all my colleagues to support this important amendment.

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