9.28.2005
WASHINGTON---House Majority Whip Roy Blunt (Mo.), Chairman of the Gas Price Task Force and a member of the House Energy and Commerce Committee, today made the following opening statement during the Committee's consideration of HR 3893:
"Mr. Chairman, I want to thank you for holding this markup on the Gasoline for America's Security Act of 2005. This important legislation will help to create more refinery capacity, reduce the number of boutique fuels, develop new conservation programs to help reduce the usage of gasoline, and create mechanisms that will look into prices and energy markets. When these elements are assembled, we will have a comprehensive piece of legislation that will continue to move our country towards energy independence.
"Hurricane Katrina and Hurricane Rita have demonstrated how fragile our fuel system is in this country. For example, Hurricane Katrina and Hurricane Rita have effectively shut off close to 24 percent of our nation's refinery capacity, while another 3 percent is operating at less than 100 percent. That equals almost 304 million barrels of gasoline.
"Also, as a result of Hurricane Katrina, there are still 4 refineries closed in the New Orleans area, which is another 850,000 barrels of gasoline. This demonstrates that our fuel supply system is quite fragile and that any natural disaster or other major event can have a dramatic affect. This legislation will help to develop new refineries and distribute the gasoline to different parts of the country in the event of another natural disaster.
"I am also very pleased that you have decided to continue our efforts with regards to boutique fuels and the very important waiver process that the Environmental Protection Agency (EPA) has used very effectively over the last 30 days. If we have learned anything from the last month, it is that having too many different types of fuels throughout America only helps to create supply disruptions and price spikes within the market, causing the average American to pay more for each gallon of gasoline.
"I'm also pleased that you have decided to move to the next level and entertain the idea of developing a slate of Federal Fuels that will help stabilize our fuels market during times of disruption. I am committed to work with you on this issue now and into the future. Together with our colleagues, we will move this country toward a sound fuel policy.
"Mr. Chairman, this piece of legislation is very important to this country and I applaud your efforts. I yield back the balance of my time." # # #