U.S. Senator Tim Johnson

As a member of the Senate Energy and Natural Resources Committee, I have worked for sound energy policies that will not only decrease our dependence on fossil fuels, but will also create new markets and industries in South Dakota, including working to establish the first nationwide Renewable Fuel Standard (RFS).

Congress must take a comprehensive approach that tackles the root causes of unstable supplies and price increases for energy. High gasoline and diesel fuel prices, as well as jumps in the costs of heating and cooling homes put increasing pressure on family budgets. Volatile energy prices also increase the cost of agricultural production, manufacturing, and transportation of goods, all of which resonate throughout our economy.

We need to deploy a variety of policies to address the broad array of issues impacting our markets, including increased supplies and more production of resources for a long-term solution, regulation of certain speculative trading practices in order to bring short-term price relief, and greater use of renewable fuels and investments in energy efficiency to decrease the demand for non-renewable energy. Ultimately, there is no silver bullet that will reduce fuel prices immediately. However, I believe sound policies can smooth out energy markets over time.

Renewable Energy

Biofuels play an important role in developing a more stable, domestically-controlled fuel supply that benefits the U.S. economy, the environment, and our energy security. We need energy policies that will not only decrease our dependence on fossil fuels, but will also create new markets and industries in South Dakota. As a member of the Senate Energy and Natural Resources Committee, I have worked to strengthen markets for South Dakota's ethanol facilities and increase production of soy-based biodiesel by promoting a robust renewable fuels standard (RFS).

As a senior member of the Senate Energy and Natural Resources Committee, I have led efforts to increase the amount of renewable fuels produced in the United States. In 2001, I joined Senator Chuck Hagel (R-NE) in sponsoring one of the first bills to create a nationwide Renewable Fuel Standard (RFS), and in 2005 it was my RFS amendment that the Senate Energy and Natural Resources Committee adopted to create the framework for the comprehensive energy bill Congress passed that year. Displacing foreign sources of energy strengthens our economy by lowering the trade deficit and enhances our national security by decreasing oil imports from hostile regions of the world. The Energy Independence and Security Act of 2007 goes a step further toward accomplishing those two goals. The RFS included in the bill will ensure a minimum level of 15 billion gallons of ethanol in 2015 creates a new standard for producing next generation biofuels from switch grass, wood waste and other non-grain feedstocks. These are not only helping our nation become more energy independent, they are advancing existing and new efforts to produce energy in South Dakota.

Another key component of our country's energy policy should be increased deployment of solar, geothermal, and wind energy resources for electricity generation. The renewable energy production tax credit (PTC) has proven to be a valuable tool for enhancing the growth of the wind energy industry in South Dakota and throughout the Midwest, and this valuable incentive must be extended. A report by the United States Department of Energy found that it is possible for wind power to provide up to 20% of our nation's electricity demand by 2030. Achieving this goal will not only lessen the need for fossil fuels, but will also create tremendous opportunities for South Dakota's economy to harness our ample wind resources.

Expanding Domestic Oil and Natural Gas Production

We must also pursue long-term solutions to increase domestic oil and natural gas production. I support expanding oil and gas production in areas with proven oil reserves and the pipeline and refining infrastructure necessary to bring additional supplies to market quickly and efficiently. In 2006, I backed one of the largest expansions of oil and gas leasing in the Gulf of Mexico in the past twenty years, opening up 8 million acres for exploration. I also support authorizing exploration of additional lands to increase the production of domestic energy supplies.

A coherent and comprehensive policy must also recognize that the United States is home to only 3% of the world's proven oil reserves but uses 25% of the world's daily oil output. We must improve the efficiency of our cars and trucks and improve the energy efficiency of our manufacturing sector, as well as our homes and businesses, to cut demand for natural gas.

Energy Efficiency and Conservation

Congress took strong steps on efficiency and conservation measures in passing the Energy Independence and Security Act of 2007. This landmark legislation increases fuel economy standards and authorizes new ways to save energy in the types of appliances and lights Americans purchase. The Corporate Average Fuel Economy (CAFE) provisions included in the bill require that passenger cars and light trucks achieve a combined fuel economy average of at least 35 miles per gallon by 2020, marking a 40% increase over today's standards.

Increased domestic energy production and greater efficiency in recent years combined to meaningfully reduce the nation’s oil dependence, falling from 57% in of total consumption in 2008 to 45% in 2011.