Senator Lugar has begun the 110th Congress by reintroducing and cosponsoring multiple energy related bills that confront the national security, economic and environment threats of our current energy use. Senator Lugar’s legislation proposes practical goals to reduce U.S. vulnerabilities and is focused on reducing dependence on oil imports through increased use of alternative fuels, improved fuel efficiency and increased international cooperation.

“Energy issues pose a multitude of challenges for the United States national security, foreign policy, economy, and environment. Meeting these challenges requires a rigorous and farsighted policy to move us toward a sustainable energy future, and I am hopeful for much progress on energy security in the 110th Congress,” said Senator Lugar.

“We must move now to address our energy vulnerability because sufficient investment cannot happen overnight, and it will take years to build supporting infrastructure and to change behavior. In other words, by the time a sustained energy crisis fully motivates market forces, we are likely to be well past the point where we can save ourselves from extensive suffering. Our motivation will come too late and the resulting investment will come too slowly to prevent the severe economic and national security consequences of our oil dependence. This is the very essence of a problem requiring citizen, business and governmental action.”

“In his State of the Union address, President Bush proposed to reduce petroleum based gasoline usage by 20 percent in the next ten years. These proposals can help propel bipartisan cooperation on an energy agenda that will bring meaningful reductions in U.S. oil dependence. Congress has already begun debate on proposals, and I have introduced legislation with my colleagues from both parties that offers possibilities for joint efforts with the White House in meeting our shared vision to move beyond a petroleum based economy. I look forward to working with the President and with my colleagues on both sides of the aisle in drafting and passing important energy policy legislation,” said Senator Lugar.

Energy legislation introduced by Senator Lugar includes:

The National Fuels Initiative, S. 162, seeks to diversify the fuel mix in our transportation system by encouraging sustained production and use of non-petroleum based fuels. Most notably, the bill proposes to create long-term assurances that alternative fuels could remain economically competitive if oil prices were to drop below $45 per barrel. In return, the bill would reduce taxpayer-funded subsidies when high oil prices result in highly competitive and profitable alternative fuels. The bill would also reserve a larger share of domestic fuel markets for alternative fuels, promote the installation of E85 fuel pumps and the supporting infrastructure, encourage the manufacture of flexible fuel vehicles, and increase fuel economy standards.

The bill’s proposal to increase in federal fuel economy standards takes a new, more flexible approach to the issue that would break a decades-long logjam. Specifically, the bill would create a four percent target for annual increases in Corporate Average Fuel Economy (CAFE) standards. This target would be subject to revision if National Highway Traffic Safety Administration experts conclude the targets unachievable with current technology or are unable to guarantee fleet safety, among other considerations.

The National Fuels Initiative is based on proposals from Senator Lugar’s keynote address at the Richard G. Lugar-Purdue University Summit on Energy Security on August 29, 2006.

The Energy Diplomacy and Security Act, S. 193, "recognizes energy security to be a foremost concern for United States national security and would realign our diplomatic priorities to meet energy security challenges." This bill calls on the Administration to invigorate existing bilateral energy partnerships and seek new ones with key producing and consuming countries, with a special emphasis on increasing the use of sustainable energy sources. The bill bolsters the State Department's capability to integrate energy security needs into our diplomatic activities. It creates a Coordinator for International Energy Affairs within the Office of the Secretary of State that would be charged with ensuring energy security is integrated into State Department activities and to liaise with other federal agencies. The bill also directs the Administration to expand international energy crisis response mechanisms, including formal agreements with India and China. Such a move would give oil-consuming nations more leverage and flexibility during international oil supply disruptions and help stabilize world oil markets. Finally, the bill calls on the Administration to weave a more reliable energy security fabric within the Western hemisphere, working more closely with Canada and Latin America on emergency preparedness, conservation, sustainable energy, and energy access for the poor.

Senators Lugar and Obama also reintroduced the American Fuels Act, S. 133, which would use alternative fuel technologies to reduce America’s dependence on foreign oil in a four-step approach. First, it would spur investment in alternative fuels by increasing the production of cellulosic biomass ethanol to 250 million gallons by 2012. It would also create an Alternative Diesel Standard that would require 2 billion gallons of alternative diesels to be mixed into the 40 billion gallon annual national diesel pool by 2016. Second, the legislation would help increase consumer demand for alternative fuels by providing a short term, 35 cents per gallon tax credit for E-85 fuel and by providing automakers with tax incentives to produce additional Flexible Fuel Vehicles (FFVs). Third, it would require the U.S. government to allow public access to alternative fueling stations on government property. Finally, the bill would create a Director of Energy Security to oversee and keep America focused on the goal of energy independence.

Senators Tom Harkin, Joe Biden, Byron Dorgan and Lugar introduced the Biofuels Security Act, S. 23, that would require all U.S. marketed vehicles to be manufactured as FFVs by 2016, require the major U.S. gasoline companies to carry E-85 fuel in 50 percent of their gas stations and extend and increase the Renewable Fuels Standard (RFS). See photos from the Biofuels Security Act press conference in the Photo Gallery.

Currently, the RFS sets a benchmark of 7.5 billion gallons of renewable fuels produced by 2012. In 2005, active ethanol production exceeded the 2006 RFS levels by 300 million gallons. The new legislation would set three new benchmarks:

• 10 billion gallons by 2010;
• 30 billion gallons by 2020; and
• 60 billion gallons by 2030.

More information on Senator Lugar’s energy-focused legislative efforts is available at the the Lugar Energy Initiative, which highlights not only the repercussions of America's dangerous dependence on imported oil, but also provides information on energy legislation introduced by Senator Lugar, commentary by outside experts and information on alternative and renewable energy sources.