Meeting 21st Century Energy Challenges

Meeting 21st Century Energy Challenges

By U.S. Senator Chuck Hagel

The United States needs a responsible, comprehensive energy policy if we are to maintain our competitive position in the world over the coming decades. Our economy, agricultural production and national security are all directly tied to energy. On June 28, the Senate passed a comprehensive Energy Bill, containing key provisions and tax incentives to encourage energy production and conservation, diversify fuel supply and employ new technologies. Together, these provisions will stabilize energy prices and protect our environment.

The bill includes a renewable fuels provision I cosponsored that would gradually increase the nation's use of renewable fuels from 4 billion gallons in 2006 to 8 billion gallons in 2012. Renewable fuels, like ethanol and biodiesel, are critical to meeting America's energy challenges, and Nebraska is at the forefront of this effort. Ethanol curbs America's dependence on foreign oil and creates jobs - both on and off the farm. Nebraska currently has 11 ethanol plants employing over 1,000 workers and producing over 500 million gallons of ethanol each year from nearly 300 million bushels of grain. The renewable fuels provision in the Energy Bill is a commonsense measure to help reduce our nation's dependence on foreign sources of energy while at the same time providing additional markets for Nebraska's agriculture producers.

Ethanol production is a growing industry. Plans were recently announced to build a new plant in Albion and several additional plants are currently under consideration.

In order to meet America's increasing energy needs, we must produce energy from a broader and more diversified energy portfolio, including alternative fuel resources. A 21st century energy policy must realistically and responsibly increase our domestic production of oil, natural gas, nuclear and clean coal technologies while investing in new technology and researching alternative energy sources. The Senate energy bill includes a provision to encourage hydrogen research programs at our federal labs in conjunction with U.S. universities and auto manufacturers to design hydrogen cars. The bill also includes tax incentives to expand the production of energy from wind, refined coal, fuel cells, hydro power, geothermal and biomass sources.

Another important provision included in the Senate bill is a climate change amendment, which combined two bills I introduced earlier this year - the Climate Change Technology Deployment Act and the Climate Change Technology Deployment in Developing Countries Act. Taken together, these bills propose a comprehensive, effective U.S. global climate change policy that encourages public-private partnerships to spur adoption of technology in developing countries that reduce greenhouse gas emissions. A sound energy policy must include sensible and effective climate policies that support economic growth and abundant clean energy supplies at home and abroad.

We cannot continue to defer tough energy policy choices. The House passed its energy bill on April 21st. A House-Senate conference will meet to reconcile differences between the two bills beginning this week.

We have an opportunity and responsibility to enact a reasonable and sustainable energy policy. Renewable fuels, innovative technologies, conservation and efficiency programs, and tax incentives are critical components to ensuring America maintains a reliable and diverse energy supply. Comprehensive energy legislation is needed now to empower America to develop the energy required to move us forward into the 21st Century.

http://hagel.senate.gov/index.cfm?FuseAction=NebraskaReport.Detail&PressRelease_id=219150&Month=7&Year=2005