Energy Policy Act of 2005 - Conference Report

ENERGY POLICY ACT OF 2005--CONFERENCE REPORT -- (Senate - July 29, 2005)

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Ms. COLLINS. Mr. President, I rise today in support of the Energy bill conference agreement. The final version of this legislation is imperfect, but it takes important steps forward in addressing some of this Nation's energy problems. This bill will strengthen electric reliability, further develop our renewable energy resources, and improve energy efficiency.

I would like to begin by thanking Chairman Domenici and ranking member BINGAMAN for their long and arduous work on this subject. We have now been working on comprehensive energy legislation for nearly 5 years, under three different Congresses and three different Energy Committee chairmen. I know it has been a very difficult path. I express my sincere appreciation to Chairman Domenici for his dedication, leadership, and willingness to accommodate a great diversity of views on the subject of energy policy.

I am very pleased that the Energy bill provides nearly $3 billion for wind, biomass, and other renewable energy sources. This credit could help a major wind energy development project move forward in Aroostook County and will help Maine's forest products industry by providing an important revenue stream for waste forest products. Developing Maine's wind and biomass resources creates jobs in rural areas, provides additional revenue to farmers and struggling industries, reduces greenhouse gas emissions, and helps diversify our energy supply. While I am disappointed that the bill does not contain the provision which I authored, along with Senator Bingaman, to require that 10 percent of our electricity come from renewable energy sources by the year 2020, the bill nevertheless makes important strides forward in developing our renewable energy resources.

This bill will also help improve our electricity reliability by creating new standards for the national electric transmission grid and creating incentives to spur the creation of a stronger and more robust grid. This bill also provides for improved market transparency, the first ever broad prohibition on market manipulation and filing false information, and new consumer protections for utility customers.

I am also pleased by a number of provisions included in the bill to help spur greater energy efficiency. Consumers will be able to take advantage of tax credits for hybrid cars, solar water heaters, and energy efficient improvements to existing homes. Additional tax credits will spur energy-efficient appliances and alternative fueled vehicles, which will not only reduce smog and greenhouse gas emissions but also reduce oil imports. In addition, a number of new Federal programs and 15 new product standards will reduce natural gas use in 2020 by 1.1 trillion cubic feet, and reduce peak electric demand by an amount equivalent to that produced by 85 power plants. All of these programs will not only help protect the environment, but also help consumers save money on their energy bills.

Several other provisions bear mentioning. I am pleased that the final legislation retains the amendment which Senator Levin and I offered regarding the Strategic Petroleum Reserve. This amendment requires the Department of Energy to develop procedures for using the Strategic Petroleum Reserve in such a way as to reduce the impact on taxpayers and energy consumers, while maximizing oil supplies and improving U.S. energy security. This amendment will help mitigate the impact of the Department of Energy's misguided policies on the Nation's gasoline prices.

I am also pleased that the bill includes language regarding ISO New England's misguided Locational Installed Capacity plan, also known as LICAP. This language requires the Federal Energy Regulatory Commission to very carefully weigh the concerns of Maine and other New England States regarding this proposal. I am very concerned that the LICAP proposal would unnecessarily raise electricity rates in Maine, and I urge FERC to consider this issue very carefully.

While I believe the bill makes important progress in some areas, I am extremely concerned that this bill fails to stop our growing and increasingly dangerous reliance on foreign oil. Regretfully, a provision requiring that we save 1 million barrels of oil per day by 2015 was dropped from the bill. This provision, which I co-authored, was included in the Senate-passed bill, but removed by the House. In addition, I am disappointed that the bill does not require any increase in fuel economy standards for automobiles. Although the energy efficiency provisions for hybrid automobiles and alternative fuel vehicles are important steps forward, they are not enough. Four years ago I released a report predicting that crude oil prices would hit $60 per barrel by the year 2010 unless we took aggressive action to increase our energy efficiency and reduce our reliance on foreign oil. Without greater energy efficiency measures, I am concerned that prices are likely to go even higher.

I am also concerned by a provision in the bill that would allow for an inventory of offshore oil and gas resources on the Outer Continental Shelf, OCS. I am strongly opposed to oil exploration on restricted areas of the OCS, and I believe this inventory is pointless since this Congress has no intention of allowing drilling in these areas.

I would note that this bill is much improved over the 2003 conference report which I could not in good conscience support. First, I am pleased that this legislation does not include a very harmful liability waiver for the manufacturers of MTBE. MTBE is a noxious chemical which has polluted drinking water supplies in Maine and many other States. I saw no justification for allowing the manufacturers to be let off the hook in terms of cleaning up this chemical, and I am grateful to Chairman Domenici and Ranking Member Bingaman for refusing to give in to those advocating for the waiver.

I am also very pleased with the improvements to the electricity title in this bill. The electricity provisions in this bill are good for the Northeast and have the potential to promote competitive markets which are more efficient, more reliable, and lower priced than we have now. I am pleased that the Carper-Collins provision to promote combined heat and power was retained in the bill.

While the legislation before us does not address our dangerous reliance on foreign oil, it nevertheless takes important steps to increase our use of renewable energy, improve energy efficiency, and strengthen our electricity grid. While I am disappointed at some of the things that were included in the bill as well as many things that were not included, I nevertheless believe that the bill is a step in the right direction. Given our extremely high energy prices and an even more dire energy crisis looming just over the horizon, I believe we simply cannot afford to block needed improvements out of fear that they do not go far enough, and I therefore intend to vote in favor of this legislation. However, I ask my colleagues to consider this legislation as a first step, and to again address these issues next year and the year after, until we finally begin to reduce our reliance on foreign oil and provide a secure energy future for the United States.

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