Webb: 2007 Energy Bill Bolsters American Economy, National Security & Fuel Economy Standards

Virginia Senator Criticizes Republican Protection of Big Oil

December 14, 2007 -- Washington, DC – Senator Jim Webb today said that last night’s passage of the Energy Independence and Security Act will stimulate our domestic economy, increase national security by making the United States more energy self-reliant, and improve environmental standards. The bill now goes to the House for final passage and then onto the President to sign into law.

The bill also included provisions from two research bills (S. 731 and S. 962) that Senator Webb co-sponsored to increase investment in carbon capture and storage technologies.

“Generations of Virginians know the value of coal’s role as a domestic energy source,” said Senator Webb. “Sequestration holds potential for Virginia’s vast coal reserves to be used in an efficient and environmentally-sound manner well into the future. I am pleased to see that the measures on carbon capture and storage were successfully retained in the Energy Bill.”

“Although there were additional proposals that I would have liked to see in the bill, I believe this legislation, in the end, will improve national security and stimulate our economy through the development of renewable fuels produced here at home,” continued Webb.

“My biggest disappointment was that the Republicans in the Senate voted to strip language from the bill that would have closed $13 billion in tax loopholes for the oil companies,” said Webb. “At a time when oil company profits are at an all time high and gas is over $3 a gallon, I’m having a hard time understanding their logic.”

The bill calls for an increase in the use of ethanol, escalating production from 8.5 billion gallons of ethanol next year to 36 billion gallons by 2022. 21 billion gallons of this new renewable fuel requirement must come from advanced biofuels, such as switchgrass. It also contains key provisions to diversify our nation’s renewable energy resources. Diversification of our sources of ethanol is essential to lowering the high price of corn, which is adversely affecting key sectors of Virginia’s agriculture community and consumers.

The major provisions in the National Energy and Environmental Security Act of 2007 supported by Senator Webb include:

* Carbon Capture and Storage Research and Development. The bill authorizes

a nationwide assessment of geological formations capable of sequestering carbon dioxide underground, and expands research and development by authorizing no less than seven large-volume sequestration tests in a variety of different geological formations. It would establish a program to demonstrate technologies for the large-scale capture of carbon dioxide from industrial sources. Senator Salazar sponsored S. 731 which requires the national assessment, and was a co-sponsor of S. 962, which expands carbon capture and storage research, development and demonstration programs.

* Cellulosic/Biofuel Research and Development: The bill ensures that biofuels

facilities built after the date of enactment achieve at least a 20 percent reduction in life cycle greenhouse gas emissions. It also creates grants for 10 eligible entities for the research and development of cellulosic ethanol and biofuels. In addition, this legislation creates provisions for cellulosic and other feedstock that promote sustainable use of resources and to facilitate local and on-farm use of these materials. Also, this bill establishes a program for biorefineries that use corn-based ethanol to be retrofitted to accept a range of feedstock. Senator Salazar was a co-sponsor of S. 987 that led to these increased biofuel requirements and directs the DOE to study the state of technology and availability of advanced biofuels, and the feasibility of increasing nationwide consumption of ethanol.

* Renewable Fuel Standard (RFS): Under the bill, the expanded renewable fuels

standard (RFS) requires 9 billion gallons of renewable fuels in 2008 and progressively increases to a 36 billion gallon requirement for cars and trucks by 2022. After 2010, an increasing proportion of the RFS will be met from cellulosic sources that will diversify energy crops and use non-food crops, such as switchgrass. It also includes environmental safeguards to reduce carbon emissions. This plan also includes incentives to boost the production of biofuels and the number of Flex Fuel and other alternative fuel vehicles.

* Increased CAFE Standards: Increases fuel economy to 35 miles per gallon by

2020 and include passenger cars and light trucks in the fleet average, the first time the fuel economy standards have been increased since 1975. After 2020, fuel economy must improve at the maximum feasible rate each year until 2030. It is estimated that by 2025, the fuel economy increases for cars and light-duty trucks could: Save 2 million barrels of oil saved per day, or nearly the amount of oil imported by the United States today from the Persian Gulf; Reduce emissions from motor vehicles by 17 percent below projected levels, or the equivalent of taking 28 million of today’s vehicles off the road in one year; and save American families $700 - $1000 per year at the pump, depending on driving habits, (based on a $3.00 gas price). By 2025, the standards are estimated to save consumers $53 billion in net consumer savings in that year alone, a savings that will continue to increase in subsequent years.

Source: Senator Jim Webb

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