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   Mr. STEARNS. Madam Speaker, I am here to speak on a growing controversy, the controversy of who is to blame for the high gas prices, particularly in the Midwest, the high spikes. Some say it is big oil and others say it is the result of the EPA forcing through Phase II formulated gasoline.

   Let us this afternoon analyze the facts and begin to see where the responsibility lies. Let me cite from an internal Energy Department memo that proves that the administration knew that the new formulated gasoline, RFG, as required by EPA was a major reason for the spikes in the Midwest.

   The memo was circulated while the administration was publicly blasting the big oil companies for gouging Americans. The Washington Times obtained the June 5 memo that was written for Secretary Richardson of the Department of Energy by the Department's acting policy director, Ms. Kenderdine.

   This memo mirrors what analysts and oil companies have been stating; the mix of high demand and low supply has led to high prices for all gasoline. We all realize that; that makes sense. Of course, that is part of the cycle in a free market experience. The disturbing part of that memo goes on to say, and let me quote, Madam Speaker, ``the Milwaukee and Chicago areas supply situation is further affected by, among other things, an RFG formulation specific to the area that is more difficult to produce.''

   Despite the clear-cut facts in the memo, the administration has claimed that the price hikes and spikes were unexplainable. In fact, they have openly speculated that it is probably big business beating up on poor citizens again. When, in fact, it is big government beating up on the American taxpayers again.

   Refineries have been working to capacity to produce a new EPA-mandated gasoline and have been strained to meet the summer demands. This has left reserve supplies in a dangerous position.

   According to the DOE memo, Chicago refineries do not have the capacity to step up production when there is a shortage and the specifically formulated gasoline mixed with the ethanol in the region could not be imported from other areas because few make the unique blend of fuel.

   The most damaging evidence is the conclusion in that memo from June 5 that supplies were sufficient to meet overall demand at the time. The market was ``sufficiently tight,'' he went

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   The White House has attempted to rely on a strategy to deflect blame from the real culprit, themselves. Considering the gasoline problems facing Americans today, I am very surprised at the timing of the EPA and this administration to move forward with the implementation of this new blend, this RFG Phase II.

   I do not think the administration intentionally did this, but I am not sure. Where is their energy plan today? Where are the steps that could have prevented this from happening? Why did the EPA simply not postpone changing the gas formulas until such a time as the oil market had leveled off? Also, why did St. Louis, Missouri receive a waiver while, to my knowledge, no other city did?

   Another shocking piece of this show is on Friday, June 30, the EPA released in a proposed rulemaking a comment period on whether reformulated gasoline is needed to meet the air quality standards. In other words, they are saying is this even needed. What? I mean, here they are mandating they be put in place, yet now they are issuing a memo to say is it needed. You mean to tell me that they insisted on moving forward with Phase II of RFG without knowing if they even needed to keep the program?

   When will the EPA do their homework before they force regulations upon the American people? It appears to me from the evidence that the spiked prices in the Midwest were due to the EPA forcing a new formulation, a new blend of gasoline, during this time of high OPEC prices and low supplies.

   The EPA should accept responsibility for putting the public through the expensive process of reformulated gasoline without proof that the gasoline would help improve our air and should withhold moving forward with any other new RFG regulations in any other cities.

   Madam Speaker, the EPA and Department of Energy must formulate a plan and study to make sure their plan is effective before they gouge the American people at the pumps.

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