JANESVILLE / GREEN BAY –  U.S. Reps. Paul Ryan (R – Janesville) and Mark Green (R – Green Bay) today sent a letter to the Administrator of the Environmental Protection Agency (EPA), Christine Todd Whitman, to emphasize the importance of completing a study in October on the feasibility of reducing the number of so-called "boutique fuels" in the Midwest and across the nation.

In their letter, the legislators cited the August 14 fire at the CITGO Lemont, Ill., refinery and subsequent gasoline price spikes as further evidence of the tightness of Wisconsin's fuel supply.  (Green, Ryan and other Wisconsin legislators had previously brought up the issue of extremely tight supply and the need for flexibility in a May 3 letter to the EPA and the Department of Energy following another area refinery fire.)

 Green and Ryan thanked EPA Administrator Whitman for demonstrating regulatory flexibility in the wake of the CITGO fire and the resulting supply disruption by allowing CITGO to relax the volatile organic compound requirement.

The legislators also wrote that they want to ensure EPA's regional fuels study is still on track to be released in October.  Ryan and Green had introduced a bill in May to order a study on the feasibility of reducing the number of boutique fuels in the Midwest and across the nation. In a June 20 meeting with members of the Wisconsin congressional delegation, Administrator Whitman noted that the EPA hoped to have a boutique fuels study completed in October, 2001.

"The recent spike in gas prices following the CITGO refinery fire demonstrates again how we need to relax the tight fuel supply situation in our area," Ryan said.  "Reducing the number of boutique fuels required is a possible solution, and I am looking forward to hearing from the EPA this fall on this issue.  In the meantime, I appreciate the flexibility the EPA has granted.  Hopefully, this will mean relief for Wisconsin drivers."

"The wild fluctuation in gas prices is causing havoc with the financial well-being of Wisconsin's families and with our economy," said Green.  "We need to put an end to these roller coaster prices and I hope the EPA study we requested will help point us toward the path of price stability."

Additionally, Ryan and Green in their letter to Whitman requested a meeting in September with an EPA expert to brief them on the progress of the agency's regional fuels study.

A copy of the legislators' letter to Administrator Whitman follows this release.

Christine Todd Whitman
Administrator
Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Room 1101A
Washington, D.C.  20460

Dear Administrator Whitman:

We are writing to thank you for quickly granting temporary relief from reformulated gas (RFG) rules for the CITGO refinery that serves the Chicago-Milwaukee region.  We feel that this incident supports our concern that fuel supply shortages are imminent given limited RFG supplies for our area and possible refinery emergencies.  This concern was outlined in our May 3, 2001 letter to your office. Further, it illustrates how important it is to prepare a plan to implement a regional fuels strategy instead of the current patchwork of boutique fuels.  We would like to receive your assurances that EPA's regional fuels study, as discussed during our meeting on June 20th, is still on track to be released in October.

As you know, on August 14th, the CITGO refinery in Lemont, IL, caught fire, which caused a shortage of reformulated gas in Wisconsin.  Following the accident, the price of gasoline at the pump began to climb.  On August 15th, the average price of gasoline in the Milwaukee area was $1.55.  By August 28th, the average price of gasoline had reached $1.89, a 22 percent difference.  Your quick action allowing the CITGO refinery to relax the volatile organic compound requirement from August 28th to September 15th is greatly appreciated and will hopefully stem the increasing price of gasoline in our area by improving supply.

However, having to go through a progression of shortages, price increases, and subsequent EPA waivers following every production or transportation problem is only a Band-Aid solution.  A long-term regional fuels plan would broaden the area served by our specific fuel, which would in turn secure additional supply for our consumers in general and specifically when incidents like the fire at the CITGO plant occur.

Again, we appreciate your timely response to help stop the emergency gas supply disruption in Wisconsin.  The recently passed comprehensive energy policy bill, H.R. 4, includes language from our regional fuels study legislation, H.R. 2017. Because of our interest in this issue, we would like to request a meeting in September with an expert on your staff to brief us on the progress of the regional fuels study your agency is conducting.  Please contact our offices to set up this appointment.