Mr. Chairman, I come to this energy conference with great optimism. The Senate comprehensive energy bill is the product of a bipartisan process in which we carefully examined its multiple components. We developed this bill over a four-month period, spent two weeks on the markup in Committee, and two weeks debating the bill on the Senate floor. The bill passed by an 85-12 vote, a strong endorsement of this bill.
The Senate bill has some important provisions for renewable and alternative energy and hydrogen research and development, tax credits to provide incentives for renewable energy, and a renewable electricity standard for electric utilities. It contains a resolution that acknowledges for the first time the problems with climate change and the need to address it. It contains a modest request to the President to reduce our dependence on oil.
The Senate bill contains a renewable fuels mandate for the nation -- ethanol. I am particularly sensitive to States' needs with respect to renewable fuels and renewable energy. Hawaii and other remote areas lack the ability to produce ethanol. These areas need to be freed from importing ethanol and fluctuations in the price of crude oil.
Hawaii has had the highest gasoline prices in the nation over the last 10 years. We also have a State mandate to use ethanol, which was enacted last year and due to go into effect in spring 2006. Our State ethanol mandate is driven by the desire to increase the use of biomass, increase the renewable content in our transportation fuels, and decrease the importation of crude oil to Hawaii. Our state's sugar interests and ethanol producers are struggling to establish facilities for ethanol production in order to meet the State mandate.
This is why I and other cane state Senators appreciate the inclusion of cellulosic and sugar cane-to-ethanol provisions in this bill. The demonstration provisions will greatly assist us in reaching our ethanol goals in the State.
However, we need a loan guarantee program that helps our producers. Unfortunately, the loan guarantee program in the amendment that was adopted is more restrictive than the one approved and reported by the Energy Committee. Hawaii's ethanol facilities are projected to produce between 5 and 15 million gallons of ethanol. The first two plants are scheduled to be under 10 million gallons in size. Hawaii has an independent market of about 45 million gallons, and a State requirement for ethanol. Our facilities will be smaller than in other States and would greatly benefit from a loan guarantee program for smaller producers. This is very important to my State and I look forward to working with my colleagues to further address this issue in conference.
The energy bill is not perfect. The Senate did not include fuel economy standards to increase the fuel efficiency of automobiles, which is a vital component of a comprehensive energy policy. The American people want to spend less money on gasoline, be less dependent on foreign oil, address the issue of climate change, and breathe cleaner air. Also the bill does not substantively address the growing emissions of carbon dioxide, which are radically changing the world around us.
Mr. Chairman, as I said before, there are many differences between the House and Senate bills. My hope and advice is that we do not rush through the process of conferencing on these two bills. We are very close to enacting truly groundbreaking energy policy -- for the first time in over 10 years. We all want to deliver a product -- to our constituents, the nation, and to the President. But let's not sacrifice the content of the bill and the opportunity for bipartisan agreement in order to meet the August 1st deadline. Thank you, Mr. Chairman.
