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NCGA Backs Bipartisan Bill to Simplify Fuel Standards and Boost Ethanol
Use
(6-22-01)
A bipartisan effort
in the U.S. House of Representatives led by Rep. Roy Blunt (R-MO) and
Bobby Rush (D-IL) and with support of House Speaker Denny Hastert (R-IL)
has introduced legislation to greatly simplify the manufacture and distribution
of gasoline. The Gasoline Stabilization Act of 2001 calls for uniform
standards for gasoline and diesel fuel throughout the nation and could
boost the use of ethanol by adding as much as 15% of the nation's gasoline
supply to the reformulated gasoline (RFG) program.
"Refiners
will be required to produce gasoline that meets a uniform nationwide
formula that meets the requirements of the RFG program using a single
oxygenate," explained John McClelland, Director of Energy and Analysis
at NCGA. "This would eliminate all so-called 'boutique fuels' that
many areas of the country have been using instead of reformulated gasoline
to reduce air pollution."
Some oil company
executives have contended that the primary cause of gasoline price spikes
have been the myriad fuels oil companies have to produce for the boutique
markets. The legislation eliminates the ability of individual states
to create special fuel requirements.
Blunt said the bill
is about simple economics. "It's time to see some common sense
at the pump. Communities across the nation use as many as 45 different
blends of gasoline. When supply can't meet demand in an area that uses
a boutique fuel, prices shoot up." Rush added that his motivation
for cosponsoring the bill "stems from the incredible price spikes
that consumers in Chicago and the rest of the Nation have endured over
the past two years."
The use of RFG with
oxygen will provide even greater air quality benefits than boutique
fuels. McClelland noted, "This is important legislation for all
gasoline consumers because it will greatly simplify the refining and
distribution system for gasoline while providing cleaner-burning ethanol
blends to markets that need to improve their air quality.
"If boutique
fuels are really the problem as the oil companies claim, then this bill
fixes the problem," he concluded.
The bill, H.R. 2249,
will be referred to the House Energy and Commerce Committee
Last
reviewed June 22, 2001
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