"...energy is the albatross of U.S. national security..."
"...oil will become an even stronger magnet for conflict and threats of military action than it already is..."
"...most of the world's oil is concentrated in places that are either hostile to American interests or vulnerable to political upheaval and terrorism..."
"...we are used to thinking in terms of conventional warfare between nations, but energy is becoming the weapon of choice for those who possess it..."
- Sen. Dick Lugar, March 13, 2006, The Brookings Institution
Background
Senator Dick Lugar has been leading the way for energy security with bipartisanship for more than a decade. He began the quest for FUEL FREEDOM in 1996, when the average price of gasoline was $0.97 per gallon. At the time, Senator Lugar recognized that America's dependence on foreign oil threatens our
Senator Lugar at the Lawrence County Lincoln Day Dinner on April 22. | national security and understood that a fuel source created by agricultural products could inject new resources into American farms.
In 1996, as Chairman of the Senate Agriculture, Nutrition and Forestry Committee,Senator Lugar chaired a series of hearings to initiate a national biomass ethanol research program, and witnesses identified cellulosic ethanol as the most efficient production method for ethanol.
In 1999, Senator Lugar and former CIA Director Jim Woolsey authored "The New Petroleum" in Foreign Affairs magazine. This essay, which still serves as a leading article, makes a strong case for cellulosic ethanol and the need to create a national program to encourage renewable fuels.
Watch Senator Lugar's Energy Commercials:
Senator Lugar has kicked off his television advertising with commercials discussing our nation's vulnerability due to our reliance upon imported oil and how Indiana can play an integral role In the quest for FUEL FREEDOM.
Be on the lookout for the 30 and 60 second commercials playing across the state. If you don't want to wait until you are in front of a television, visit the Photos and Video page to watch them.
Cellulosic Ethanol
In 2000, Senator Lugar worked to pass the Biomass Research and Development Act. This law requires the U.S. Departments of Agriculture and Energy to coordinate research efforts to promote advancements in biomass energy production. More information on this program is available at http://www.bioproducts-bioenergy.gov/.
Cellulosic ethanol biomass is produced from grasses, agricultural waste, wood chips, and virtually any other living organism.
Switchgrass is one of the sources Senator Lugar has advocated as a source for producing cellulosic ethanol. Switchgrass grows quickly and easily throughout the country without much irrigation or fertilizer - making it an effective and efficient crop for cellulosic ethanol. Other agricultural waste products such as wheat straw and corn stalks, and even wood chips from Indiana's vibrant hardwood industry, also serve as viable, renewable sources for cellulosic ethanol.
In 2005, Senator Lugar co-authored the National Security and Bioenergy Investment Act. This measure increased funding for the national biomass program and modified the original Biomass Research and Development Act to push ethanol and other biomass derived products into commercial form more quickly. Key provisions of this bill were included in the comprehensive energy bill passed in 2005.
In 2000, Senator Lugar chaired an Agriculture Committee hearing on precursory legislation to the Renewable Fuels Standard (RFS). The RFS increases the amount of renewable fuel blended into gasoline starting in 2006 and will double the amount of renewable fuel used by 2012.
Senator Lugar co-authored legislation in 2001, 2003 and again in 2005 to create the RFS. The RFS was finally passed in 2005 as part of the comprehensive energy bill signed by President Bush.
E-85 and FFVs
Senator Lugar leads the campaign for E-85 motor fuel and Flexible Fuel Vehicles (FFVs) in the U.S. Senate and in Indiana. FFVs can operate on regular gasoline and E-85, which is motor fuel with 85 percent ethanol content. Senator Lugar's legislative vision calls for all U.S. marketed vehicles to be manufactured as FFVs in ten years (a modification that generally costs $150 per car) and nearly 25 percent of filling stations carrying E-85. Converting all vehicles to FFVs would ensure an ample market for E-85, which in turn could drive investment into additional fuel research. To find out if your vehicle is a FFV, visit http://www.e85fuel.com/e85101/flexfuelvehicles.php.
In July 2005, Senator Lugar visited the Jiffy Mini-Mart in Terre Haute, which was the first E-85 station in Indiana. Currently, nearly 80 Hoosier fuel stations offer E-85. For the most updated list of E-85 stations in Indiana, visit the National Ethanol Vehicle Coalition's website at: http://www.e85fuel.com/database/locations.php?state=inIndiana.
Biodiesel, like ethanol, represents a promising opportunity to convert biological oils into a clean, high quality fuel that can be used in today's trucks and automobiles. Annually, the United States consumes over 40 billion gallons of diesel fuel. To seriously address the costs and risks associated with this consumption, we must increase the production and use of biodiesel.
Biodiesel is produced and used worldwide from fats and oils such as soybean oil, canola oil, palm oil, and animal fats. Currently in Indiana, at least three production facilities are planned or under construction; state-of-the-art blending facilities are in place; and thousands of trucks, tractors, and busses are using biodiesel.
In Congress, Senator Lugar supports incentives to expand the produciton and use of biodiesel. Recently he introduced legislation that would ensure that biodiesel and other alternative diesel production and use would increase at least five fold in less than ten years.
Clean Coal Technology
America is sometimes referred to as the "Saudi Arabia of Coal," and with good reason. Our nation has a quarter of the world's recoverable coal reserves - 17 billion tons of which are in Indiana. At current rates of usage, those numbers project to over 250 years of reserves. Legitimate environmental concerns, however, have called into question our nation's ability to safely rely on this plentiful source of energy.
Fortunately, a variety of new technologies offer the possibility of using this domestic resource without compromising the quality of our water and air. Already, we are retro-fitting many of our nation's coal-fired power plans with "scrubbers" that significantly reduce harmful emissions. Another technology, Integrated Gasification Combined Cycle (IGCC), offers the possibility of coal-fired power generation with nearly zero emissions. Through the IGCC process, coal is broken down chemically so that its harmful components can be separated out before the remaining synthetic gas is burned for energy.
The Energy Policy Act of 2005, which Senator Lugar strongly supported, includes $1.61 billion in incentives for clean coal technologies - provisions that will allow Indiana's power plants to burn more cleanly. In addition, IGCC will allow Indiana to use more our native coal (which is bituminous) instead of relying on coal imported from Western states (which is sub-bituminous).
The Energy Policy Act also included legislation authored by Senator Lugar and Senator Barack Obama (D-IL) designed to spur the development of processes that can turn coal into a liquid transportation fuel. This technology, often referred to as the "Fischer-Tropsch" process, yields a diesel fuel that is compatible with existing vehicle technology and infrastructure and superior to oil-derived fuel when it comes to performance and emissions. Moreover, the resulting fuel is expected to be economically competitive with conventional fuel under current market conditions.
In Indiana there are at least 24 ethanol plants either operating, under construction or in some stage of planning. The currently planned construction of ethanol plants currently planned could represent more than $2 billion in investment in Indiana and create over 27,000 jobs for our state's economy, according to recent studies.
If fully realized these facilities could produce nearly 2 billion gallons of ethanol per year, up from the 100 million gallons per year currently produced in the state. The increase to 2 billion gallons could substantially offset the 3.1 billion gallon of gasoline currently consumed annually in Indiana.
In addition, as the development of cellulosic ethanol production continues, Indiana is poised to make significant contributions. Department of Energy studies have estimated that Indiana has the biomass resources to produce at least another 1-2 billion gallons of ethanol.
Hearings and Speeches
In March 2006, Senator Lugar delivered the inaugural speech for the Brookings Institution's 90th Anniversary Leadership Forum series. In his address, Lugar said, "... the balance of realism has passed from those who argue on behalf of oil and a laissez faire energy policy that relies on market evolution, to those who recognize that in the absence of a major reorientation in the way we get our energy, life in America is going to be much more difficult in the coming decades..." The speech received wide acclaim and the New York Times columnist Thomas Friedman called it "one of the best speeches I've ever read about the necessity of breaking America's oil addiction now, and redefining realism..." and said to "drop what you are doing and read it now."
In February 2006, Senator Lugar addressed the U.N. Security Council and discussed the dangers of oil dependency. Senator Lugar said, "...the potential scarcity of energy supplies and the imbalances that exist among nations represent grave threats to global security and prosperity%u2026 The United States, the world's richest country and the largest emitter of greenhouse gases, should seize this moment to make a new beginning by returning to international negotiations in a leadership role..."
In his role as Chairman of the Senate Foreign Relations Committee, Senator Lugar has presided over several hearings examining the high costs of oil dependence, the hidden costs of oil and energy security in Latin America. In addition, former Chairman of the Federal Reserve, Alan Greenspan, testified in a hearing about oil dependence and economic risk. It was his first congressional hearing since retiring.
Sometimes it is difficult to know what individuals can do to improve our energy security. The links on this website provide several resources to help you affect change.
In addition, as you and your family determine your transportation needs, you can give serious consideration to options that use less gasoline, including FFVs, hybrids and biodiesel vehicles. For a list of the hybrid and biodiesel vehicles for sale, visit DiscoverAlternatives.org.
Check out the FUEL FREEDOM links for more information about renewable fuels, ethanol, cellulosic ethanol, and FFVS. In addition, find ways to educate your children about renewable energy.
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America uses more than 20 million barrels of oil every day, of which almost 60% is imported.
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In 2005, the United States spent $251.6 billion on oil imports, about 25% of which went to Middle East countries. If the price of oil stays about $60 a barrel, we will likely top $320 billion in 2006.
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Two-thirds of the world's proven oil reserves are located in Middle East countries.
- Sixty-eight percent of the oil we use is for transportation.
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By 2030, energy-related carbon dioxide emissions will increase by 53%.
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In 2005, 95 refineries produced a record 4 billion gallons of ethanol.
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More than 5 million cars on the road today are Flexible Fuel Vehicles (FFV) and can run on E-85.
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Over 90% of American drivers said they would prefer a flex-fuel vehicle over a strictly gasoline or diesel version.
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Biofuels have the potential to:
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Produce the equivalent of nearly 7.9 million barrels of oil per day;
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Increase American farmers' profits by more than $5 billion a year by 2025; and
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Reduce greenhouse emissions by 1.7 billion tons a year.
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