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While gas prices continue to cause headaches for American's in all areas of the country, the U.S. House is working to address the cause of the rising prices at the pump. The Gasoline for America¡¦s Security (GAS) Act of 2005, which was debated in the House last week, offers practical solutions to help ease the energy crisis in the U.S. With the passage of this important legislation, our country can move forward with a bold plan to lower the cost of gasoline and reduce our dependence on foreign sources of energy. The GAS Act presents a balanced and comprehensive long range approach to ensuring that gas prices do not become a hindrance to our growing economy.
The Gasoline for America¡¦s Security Act of 2005 seeks to deal with gasoline prices within the market system and without resorting to price controls. The GAS Act will accomplish this goal by increasing capacity, streamlining fuel supply, providing transparency in gasoline pricing, fighting price gouging, reducing bureaucracy, and revitalizing refineries. Specifically, the GAS Act encourages new refineries to increase supply, limits ¡§boutique fuels¡¨ that have pushed up gasoline prices by artificially limiting supply, promotes new pipelines to get new crude oil and refined product to consumers at lower prices, promotes conservation through carpooling and a fuel-efficiency awareness campaign and requires a Federal Trade Commission (FTC) study into credit card company processing fees, which may inflate consumer costs.
If we expect gasoline to remain affordable, we must build additional refinery capacity. About 47 percent of U.S. refining capacity and 28 percent of oil production is concentrated in the Gulf of Mexico. Within a week of Hurricane Katrina¡¦s landfall, the national average retail price for motor vehicle gasoline rose by 46 cents to $3.069 per gallon. The GAS Act will address this issue by reforming cumbersome procedures for refinery projects at the request of a state¡¦s governor or on presidentially designated federal lands. ƒnTo encourage refinery production, this bill provides regulatory risk insurance for new refiners. It also requires the president to designate sites on federal lands, including at least three closed military installations that are appropriate for building a refinery. The GAS Act removes regulatory road blocks by implementing a Clinton Administration recommendation to allow a city or region to apply for an extension of clean air deadlines if local leaders can demonstrate downwind pollution from another area is to blame. These reforms will be vital in keeping gas prices reasonable in the coming years.
The GAS Act continues the commitment of Congress to appropriately reform America¡¦s energy policies over the mid- and long-term. In conjunction with the Energy Policy Act of 2005, the Gasoline for America¡¦s Security Act of 2005 addresses important issues to reduce our dependence on foreign sources of refined petroleum products and increase domestic production and conservation efforts. The GAS Act must now be considered by the Senate.
On another front, I was recently appointed to the Gas Price Task Force composed of House members from across the country with particular experience and background on energy issues. This task force will be dedicated to immediate action to ease the widespread fuel supply crisis occurring throughout much of the nation. We are working with leadership to gather information from different agencies and organizations and using this information to inform members and find solutions. We will continue to work on reforms that meet the energy needs of our nation now and in the years to come.
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