June 22, 2000

Manzullo: Study Says EPA Could Dramatically Lower Illinois Gas Prices

[WASHINGTON] Congressman Don Manzullo (R-Egan) today said an independent study now indicates the EPA’s new reformulated gasoline (RFG) regulations have spiked northern Illinois gas prices by at least 25 cents per gallon.

A study by the independent Congressional Research Service indicates gas prices in northern Illinois have increased nearly $1 per gallon over the last year. The CRS report states 48 cents of the gas hike is due to OPEC’s decision to cut back on oil production. Another 25 cents is due to pipeline breaks and distribution troubles in the Midwest.

The final 25 cents of the increase is directly related to the implementation of the EPA’s new RFG rules — which went into effect June 1 in the greater Chicago area, the CRS report states. The new gasoline is much more expensive and difficult to make because it requires another complicated production process. This has caused delivery and supply problems of the new reformulated gas as well as conventional gas, increasing the cost to motorists throughout Illinois.

For months, Manzullo has been urging the EPA to give Illinois a waiver on the new RFG regulations because of the cost and the fact that the ethanol used in the Midwest burns much cleaner than additives used in other regions of the country. Illinois should get an “ethanol credit” and should be exempt from the new regulations. EPA Administrator Carol Browner initially agreed to offer the “ethanol credit” but has not followed through with action. Instead, she has continually stated the new RFG rules have had little if anything to do with rising gas prices in Illinois.

In light of the study, Manzullo is again urging Browner to immediately grant Illinois the ethanol credit to help dramatically lower the price of gasoline in Illinois.

STATEMENT

“We received some good news yesterday when OPEC agreed to increase production. We will continue to press the oil ministers for more output so the price will come down.

“We must do more at home to lower prices, as well. An independent study indicates the EPA’s new reformulated gas regulations have spiked northern Illinois gas prices at least 25 cents per gallon since June 1. Because we burn much cleaner ethanol in Illinois, we should get a waiver from this new and expensive regulation. I am again urging the EPA to grant us this ethanol credit to help us bring down these outrageous gas prices in northern Illinois.”