FOR IMMEDIATE RELEASE                                                         Gina Carty (Sensenbrenner), 202-225-5101
June 14, 2000                                                                                    Kate Dwyer (Ryan), 202-225-3031
                                                                                                          Lynn Becker (Kohl), 202-224-5653
                                                                                                          Laura Grund (Feingold), 202-224-5323
                                                                                                          Jerilyn Goodman (Baldwin), 202-225-2906
                                                                                                          Celi Clark (Kleczka), 202-225-4572
                                                                                                          Robin Swanson (Barrett), 202-225-3571
                                                                                                          Niel Wright (Petri), 202-225-2476
                                                                                                          Chris Tuttle (Green), 202-225-5665

WISCONSIN  LEGISLATORS
URGE  REFORMULATED  GAS  WAIVER
Energy Department Memo, Federal Trade Commission Inquiry
Point to Limited Reformulated Gas Supply in Wisconsin

(Washington, DC) – In a letter sent today, Congressman Jim Sensenbrenner, Senator Herb Kohl, Senator Russ Feingold, Congressman Tom Barrett, Congressman Paul Ryan, Congressman Jerry Kleczka, Congressman Tom Petri, Congressman Mark Green, and Congresswoman Tammy Baldwin once again urged Environmental Protection Agency (EPA) Administrator Carol Browner to grant a waiver of Southeastern Wisconsin’s reformulated gas (RFG) requirements under EPA authority.  Today’s letter follows previous waiver requests by both Governor Tommy G. Thompson and Members of the Wisconsin congressional delegation.

In their letter, the legislators cited three developments prompting their latest letter to Browner.  On June 5, 2000, a U.S. Department of Energy (DOE) memorandum prepared at the request of Vice President Gore discussed Wisconsin’s tight supply of Phase II RFG and the resulting high costs to consumers.  The memorandum states, “…supply is sufficiently tight that any disruption in the distribution system could contribute to Phase II RFG shortages.”

The Wisconsin legislators also cited a June 12, 2000, meeting EPA staff members held in Milwaukee with officials from eight oil companies.  Those officials indicated to EPA staff that the Explorer Pipeline, which serves Southeastern Wisconsin, continues to experience problems and is not operating at full capacity since a rupture three months ago.

Finally, the legislators cited a Federal Trade Commission inquiry into possible RFG price gouging which is currently underway as a reason for EPA to grant the waiver.

“This letter will ensure that EPA is well aware of the delegation’s position on this issue; if there is insufficient supply, the people of Southeastern Wisconsin must have a waiver from the reformulated gas requirements.  We were concerned about insufficient supply when the West Shore Pipeline went down, and right now, price signals indicate that there is still a tight market.  EPA, DOE, and the FTC need to get to the bottom of the price situation with the refiners, but if supplies are constrained, Southeastern Wisconsin needs a temporary reprieve from the RFG program,” said Senator Feingold.

"We must take the quickest and most effective remedy toward reducing the price of gas in the Midwest," Congressman Tom Barrett said.  "That's the bottom line.  Price remains unacceptably high."

"These unreasonable prices are affecting the economic vitality of the entire state," said Congressman Green.   "We need to take every and any step that will restore sanity to gas prices."

"Gas prices are way up for a number of reasons, but one of them is certainly the reformulated gasoline requirement.  People can't afford these prices, they're dangerous for the economy, and consumers need help," said Congressman Petri.

Congresswoman Baldwin added, "People in rural areas are especially affected by the increase in gas prices because of their strong reliance on cars for many necessities.  This temporary waiver would offer needed relief until gas prices stabilize."

“These gas prices are too great a burden on consumers and the EPA has not been able to sufficiently explain the cause of the problem.  We have conveyed in the strongest possible terms our support for the waiver, as well as on-going inquiries into who is profiting at the expense of Wisconsin’s consumers,” Senator Kohl said.

Congressman Ryan added, "I hear every day from constituents hurt by rising gas prices. A temporary waiver of the RFG mandate is clearly appropriate for southeastern Wisconsin - especially considering the DOE's acknowledgment that RFG supplies are tight in the area."

"The bottom line is that the gas price situation in Southeastern Wisconsin has reached crisis proportions," Kleczka said.  "We need a waiver and we need it now."

“We in Southeastern Wisconsin are happy to hear that DOE has recognized what consumers have known for weeks.  Gas prices are skyrocketing nationwide, and Wisconsin’s suffering is doubled with reformulated gas.  It’s high time EPA listens to DOE and grants us a badly needed waiver,” concluded Congressman Sensenbrenner.

The DOE memorandum may be viewed at Rep. Sensenbrenner’s website: http://www.house.gov/sensenbrenner.

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