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Congress of the United States, Washington, DC  20515
 

FOR IMMEDIATE RELEASE 
For additional information or comment, contact::
March 21, 2002
Feingold: Ari Geller (202) 224-8657
Kate Dwyer (Ryan) 202-225-3031
Chris Tuttle (Green) 202-226-7402
 
 

Feingold, Ryan, Green Fight to Increase Reformulated Gas Supply for Wisconsin, Combat Gas Price Spikes

Members to Work to Keep Reductions in the Number of Fuel Blends in the Senate Energy Bill

Washington D.C. -- U.S. Senator Russ Feingold and U.S. Representatives Paul Ryan and Mark Green announced today that they will fight to keep a provision in the Senate Energy Bill that would increase the amount of reformulated gasoline (RFG) available in Wisconsin and other states by reducing the number of different federal reformulated fuel blends. Feingold, Ryan and Green have been working together to include the provision in the Senate Energy Bill to broaden the supply from which Wisconsin could draw RFG in times of tight supply and help prevent gas price spikes. The provisions in the Senate Energy Bill are similar to legislation introduced in the House by Ryan and Green in December 2001 to rein in the proliferation of specialized "boutique" fuels.

"At a time when we have seen gas prices begin to rise again, we can not allow anyone to remove a provision that would help ease the burden of gas prices on the working people of Wisconsin," Feingold said. "The Senate needs to do everything it can to increase gasoline supplies. I am thrilled that our delegation has been able to come together in a bipartisan manner to come up with a solution to a problem that continues to have a great impact on our state."

"As debate goes on, gas prices are rising again in Southeastern Wisconsin," Ryan said. "More than one factor plays into this, but – as we learned last year – part of it is the uniqueness of the fuel we use. If we can move to standardize federal RFG – so more regions use our blend of gas – it will help us cope with supply problems better and shield drivers from wild price spikes. We can have clean air and affordable gas, but this means tackling the growing number of boutique fuels."

"For folks in Wisconsin, the thought of another approaching summer unfortunately dredges up memories of the high gas prices that have plagued our families in recent years," Green said. "We have to take preventative action today to make sure gas prices stay under control, and our proposal will help do that. By scrapping the ridiculous current fuel blend requirements and replacing them with a more simplified, streamlined system, our measure will work to make gas supplies more stable and keep prices at the pump within reason."

The measure the Wisconsin legislators worked to include in the energy bill would improve fungibility of RFG nationwide, by standardizing volatile organic compound (VOC) reduction requirements. In practice, when combined with the energy bill’s renewable fuels mandate, this would enable the part of Wisconsin that uses federal RFG to draw on supplies of federal RFG from other areas, such as St. Louis and Detroit, if necessary. The ability to rely on other sources of RFG is especially important when sudden supply shortages arise due to unexpected events such as refinery fires or breakdowns.

At present, Southeastern Wisconsin cannot draw on RFG from other areas because the Chicago/Wisconsin RFG formula is not used elsewhere in the country. The fuels language in the energy bill would help address this boutique fuel problem by bringing other areas that use federal RFG in line with Wisconsin's blend by standardizing VOC reduction requirements and requirements for the production of renewable fuels such as ethanol -- the Chicago/Wisconsin area is the only part of the country that already uses ethanol in its blend of RFG.

As the use of Wisconsin's type of RFG becomes more widespread, supply problems will become easier to address. This benefits Wisconsin drivers, because easing supply shortages will help put an end to severe price spikes.

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