Energy Policy Act of 2005

ENERGY POLICY ACT OF 2005

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Mr. DURBIN. Mr. President, I rise today in support of the renewable fuels standard, RFS, amendment. This important amendment, which I have cosponsored, will create a nationwide standard for the use of renewable fuels.

A renewable fuels standard is created that will increase the use of domestically produced renewable fuels to 8 billion gallons by 2012. The bill also allows the Nation's refiners to buy credits from refiners that use ethanol in other States to meet the requirement, ensuring additional refiner flexibility to use ethanol where it is most efficient and economical.

In Illinois, roughly one in every six rows of corn, approximately 280 million bushels is the source for ethanol. Illinois ranks second in the Nation in corn production, with more than 1.5 billion bushels produced annually, and is the Nation's leading source of clean-burning ethanol. Illinois currently has five ethanol plants, with two other plants in production. Corn grown in Illinois is used to make 40 percent of the ethanol consumed in the United States. More than 95 percent of the gasoline sold in the Chicago area contains 10 percent ethanol.

Investment in the ethanol industry in Illinois exceeds $1 billion, generating 800 jobs in plant operations and 4,000 jobs in the industry-related service sector. In fact, Illinois ethanol production alone has increased the national market price for corn by 25 cents per bushel.

Illinois farmers stand ready and eager to contribute to our Nation's energy security, and the benefits extend to the environment as well. Replacing Mideast oil with Midwest ethanol is a winner for everyone but the oil sheiks. When we can use our Illinois agricultural expertise to reduce our dependence on foreign suppliers, the whole Nation benefits.

This expanded role for renewable fuels means more than a boost to industry; it means jobs to rural America, and increased energy security. And in contrast to the environmental damage that can be caused by drilling for oil, the only drilling required to produce ethanol is the initial inch and a half deep planting of the corn seed. And for the soybeans used to make biodiesel, the seeds are only drilled an inch into the ground.

American farmers are the foot soldiers in our battle for energy independence. Farmers throughout the country have come together to build ethanol production facilities that, in many instances, have become the backbone of a regional rural economy. In fact, farmer-owned ethanol plants, taken together, are the single largest segment of the U.S. ethanol industry. As we look for solutions to high oil prices, we must remember that renewable fuels are viable alternative fuels--domestically produced and environmentally friendly.

Cleaner burning biofuels, that can be produced, transported and combusted with major environmental benefits will contribute to cleaner and healthier air and less water and soil pollution. Importantly, biofuels, being essentially greenhouse gas neutral, will also contribute to achieving environmental goals while advancing the economies of rural America.

According to an analysis completed by renowned economist John Urbanchuk of LEGC, Inc., an RFS that grows to 8 billion gallons of ethanol by 2012 would have a significant impact on both the farm and overall economy over the next decade.

It would reduce crude oil imports by 2 billion barrels and reduce the outflow of dollars largely to foreign oil producers by $64 billion.

It would create 234,840 new jobs in all sectors of the U.S. economy.

It would increase U.S. household income by $43 billion.

It would add $200 billion to GDP between 2005 and 2012.

It would create $6 billion in new investment in renewable fuel production facilities.

And it would result in the spending of $70 billion on goods and services required to produce 8 billion gallons of ethanol and biodiesel by 2012.

Renewable fuels provide for a dependable domestic source of energy that increases fuel supplies, reduces our reliance on foreign oil, and enhances our ability to control our own security and economic future--while helping our farmers by increasing demand for their crops. Increasing the use of ethanol and other renewable fuels achieves many positive public policy goals.

This amendment should be adopted.

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