Time to Reaffirm Commitment to Alternative and Renewable Fuel Sources Is Now
With gas prices rising, Congressman says gasoline price gouging investigation is necessary, while addressing supply concerns and promoting diverse sources of energy
Washington, DC - With more New Jerseyans feeling the effects of rising gas prices, Rep. Rodney Frelinghuysen (NJ-11) today said an investigation into whether the price of gasoline has been illegally manipulated is a necessary responsibility of the federal government. He also said more needs to be done to address fuel supply concerns and reaffirm current policies that develop alternative fuel sources as part of a comprehensive energy strategy.
"New Jerseyans are feeling the effects of high gas prices in their wallets, and substantive action needs to be taken to address gasoline supply concerns," said Frelinghuysen, a senior member of the House Energy and Water Appropriations Subcommittee. "Keeping a close check on possible gasoline price gouging is a necessary responsibility of the federal government, and I am pleased that the Federal Trade Commission has pledged to investigate possible price manipulation at the pump."
Several factors are affecting oil and gas prices in New Jersey and across the nation, including:
1. High demand from China and India. Oil prices are set by the world market, so even if U.S. consumption slows, the U.S. price of gas will stay the same as long as foreign demand remains high.
2. Political instability in Iran, Nigeria, and Venezuela. Iran is the number two exporting country of oil and supplies 40 percent of U.S. oil. Venezuela is the fourth leading exporter of oil to the U.S.
3. Damage to U.S. refining and transportation infrastructure as a result of last summer's hurricanes. Three refineries on the Gulf Coast shut down by last fall s hurricanes are only now reportedly beginning to return to operation, or soon will be. Additionally, some refineries deferred planned fall maintenance until this spring.
4. The summer driving season is almost upon us. Switching from winter to summer season blends traditionally causes price spikes. Adding to that is the transition from MTBE reformulated gasoline (RFG) to ethanol RFG in some parts of the country, most notably much of the East Coast and major cities in Texas and California.
5. Gas prices are affected by the futures market and speculators.
Frelinghuysen added, "The status quo of relying on foreign sources of oil or hurricane-prone refineries in the Gulf Coast for fuel will simply no longer do. To ease the pain, we need to accelerate the use and development of technologies and fuel alternatives Congress has already put in place.
The House has approved broad legislation to encourage the construction of new refineries for the first time in 30 years, which is now awaiting Senate approval. We have also made historic investments in developing fuels made from diverse energy sources. To prevent more pain at the pump, we must do more to develop smart, reliable, and long-term alternative energy solutions."
Last year, Congress passed and the President signed into law the Energy Policy Act, which:
? Increases funding for the Department of Transportation to improve Corporate Average Fuel Economy (CAFE) standards, which set fuel emission standards for cars and light trucks sold in the United States.
? Increases funding for the Department of Energy's "Clean Cities" program, which provides grants to state and local governments to acquire alternative fueled and fuel cell vehicles, hybrids and ultra low-sulfur diesel vehicles.
? Provides tax credits for the purchase of hybrid, fuel cell, advanced lean burn diesel and other alternative power vehicles.
? Provides a 30 percent credit for investments in alternative fuel refueling stations.
? Authorizes funding for a hydrogen fuel-cell program with a goal of launching hydrogen fuel-cell cars on the road by the year 2020.
? Requires 7.5 billion gallons of renewable fuel to be included in all gasoline sold in the United States by 2015. This will reduce crude oil imports by more than 2 billion barrels.
? Requires "dual-fueled" vehicles acquired under the Energy Policy Act of 1992 to be operated on alternative fuels
? Promotes clean and renewable fuels, by providing incentives for clean coal technology and renewable energies such as biomass, wind, solar and hydroelectricity.
In October 2005, the House also approved Gasoline for America's Security (GAS) Act, which bans price gouging, promotes conservation, and increases U.S. fuel supply by encouraging the construction of new refineries. This legislation is awaiting action in the Senate.
http://frelinghuysen.house.gov/cgi-data/press/files/195.shtml