Tim speaks to a group in South Dakota

National Energy Strategy:

On July 29, 2005, the Senate approved a final comprehensive energy bill by a broad bipartisan vote of 74 to 26. This bill includes several positive provisions that are beneficial to South Dakota and the nation. Some of the positive provisions included in the bill are improved electrical reliability standards to prevent future blackouts; stronger consumer protection in electric markets; studies to research increased energy efficiency in the railroad and aviation industries; tax incentives for hybrid vehicles, renewable fuels, and energy efficient technologies; provisions to promote the increased use of geothermal, hydrogen, solar, and wind power; and a Renewable Fuels Standard to promote ethanol and biodiesel production and use. As a member of the conference committee that resolved differences between the versions passed by the Senate and the House of Representatives, I worked to ensure that these positive provisions were retained in the final bill.

Renewable Fuels:

As a member of the Senate Energy Committee, I worked very hard to ensure that a strong renewable fuels standard (RFS) that reflects current growth in the industry was included in the energy bill. Renewable fuels will reduce our dependence on foreign oil, help ease increasing gasoline prices, and provide another market for South Dakota's agricultural products. Additionally, as an oxygenate that burns cleaner than petroleum-based fuels, increased use of ethanol and biodiesel will reduce smog in some of our most polluted metropolitan areas and produce cleaner burning gasoline and diesel fuel.

The Renewable Fuels Standard included in the Energy Bill is based on the Fuels Security Act (S. 650). I joined a bipartisan coalition of 21 Senators in introducing this bill in March, and I am pleased this legislation served as the basis for the RFS enacted in the energy bill. The RFS includes an accelerated schedule, beginning with 4 billion gallons in 2006 and ramping up to 7.5 billion gallons by 2012. This legislation would establish an RFS that will double the use of ethanol in motor fuel by 2012, strengthening markets for South Dakota's ethanol facilities, and will increase production of soy-based biodiesel.

For more information on ethanol, visit the American Coalition for Ethanol.

Wind Energy:

Also included in the bill is an extension of the wind production tax credit through 2007. The extension of the wind production tax credit will help provide long-term assurance to potential investors that wind production will remain a viable electricity production method.

I am pleased Congress was able to agree that the promotion of ethanol and biodiesel is beneficial to our nation, and as a member of the Senate Energy and Natural Resources Committee, I will continue to fight for energy policies that will not only decrease our dependence on fossil fuels, but will also create new markets and industries in South Dakota. Our state can be a leader in wind energy, and through the production tax incentives, we can harness wind energy as a solution to our 21st century energy needs.