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WI Congressmen Continue Push for More Rational Gas Blend System to Help Combat Price Spikes

Washington D.C. --U.S. Representatives Paul Ryan, Mark Green, and Jim Sensenbrenner today announced that they have reintroduced legislation to help ease domestic gasoline supply shortages and the price spikes that accompany them.  On behalf of himself and his Wisconsin colleagues, Ryan introduced the bill, which is essentially the same legislation he and Green introduced in December 2001 to tackle the proliferation of specialized “boutique” fuels.   

This winter, escalating gas prices have strained family and business budgets nationwide.  Although recent price increases are attributed to the severe winter and international factors that affect petroleum supplies, in past years supply strains have also been the result of domestic factors including the specialized nature of certain reformulated gas blends.  The legislation advanced by the Wisconsin legislators focuses on what can be done on the domestic side to help stabilize gas prices over the long term.  

Their legislation would streamline the current system – a regulatory jumble that has spawned over 45 boutique fuel variations: 18 different types of gasoline, each in three different grades.  This patchwork of specialized blends hinders the ability of one region to draw on another region’s gasoline supplies if sudden problems occur – such as a refinery fire or pipeline break.  On the other hand, if more parts of the country use the same type of fuel, they will have more places to turn for relief when unforeseen supply problems occur.  This is especially critical for southeastern Wisconsin, because the Chicago/Wisconsin reformulated gas formula is not used elsewhere in the country.  In past years, this lack of alternative sources of gasoline has contributed to supply shocks and price spikes at the pump.  

According to the Wisconsin congressmen’s proposed plan, cities and regions would choose from a limited number of clean fuel blends, with most parts of the country using one of three basic types of gasoline.  Their legislation includes a flexible renewable fuel mandate to encourage production and development of renewable fuels such as ethanol.

“We’re trying to fix problems that in the past have led to gas price spikes in our area,” Ryan said. “While there are many factors out of our control, like the weather and the recent strike in Venezuela, there are still things we can correct here at home that could help us down the road.  Southeastern Wisconsin still uses a very specialized blend of gasoline, and the same is true of other places throughout our country.  If a refinery fire or other domestic supply emergency hits, we still run the risk of skyrocketing prices because we cannot turn to other regions to replenish our gas supplies.  A simpler, more standardized system of gas blends nationwide makes sense.”

“It may be true that international factors are the big reason behind this most recent increase in gas prices, but the core issues here at home remain the same,” Green said.  “These government fuel rules still put steady gas supplies in jeopardy and threaten to increase prices for drivers.  If, God forbid, both international troubles and domestic supply problems were to happen at the same time, it could create a ‘perfect storm,’ for gas prices.  We need to fix the system soon, and that’s what we’re working to do with this bill.”

“Just about every year around springtime, Wisconsinites, particularly those of us from Southeast Wisconsin, have to dig deep in our pockets to pay for high gas prices,” said Sensenbrenner.  “There are many factors, both international and domestic, that contribute to these price spikes, but one thing the federal government can do to help our state is eliminate the costly regulations that force us to use a blend of fuel that is unique to our region.  Greater flexibility would mean savings for our drivers as we would be able to more easily replenish our gasoline supply in the event of a refinery fire or pipe-line break.  Instead, under the current system, we must rely on a limited number of refineries that only service our area.  Our bill provides sorely needed flexibility.”

Last year, a comprehensive energy package failed to pass Congress and become law.  This year, the House and Senate are expected to take up comprehensive energy legislation again.  It is the goal of Reps. Ryan, Green and Sensenbrenner to advance their legislation by including it in this year’s energy bill. 

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