House Approves Bill Addressing Energy, Gas Prices
Increased Refining Capacity Will be Key to More Fuel Production

October 7, 2005

WASHINGTON, DC - Congressman David Dreier (R-CA), Chairman of the House Rules Committee, voted today to approve legislation that will reverse a dramatic decrease in domestic refining capacity over the past two decades and ultimately lead to more domestic production of gasoline. The Gasoline for America’s Security Act of 2005, H.R. 3893, was approved 212-210.

"Hurricanes Katrina and Rita exposed how fragile our domestic refining capacity is," Dreier said, "and consumers continue to pay the price at the pump. This legislation is a response to those natural disasters, and the long term problem of our dwindling refining capacity here at home. For far too long, red tape and excessive regulation has prevented us from building new refineries and even forcing some to close. It’s really quite simple: we need more refining capacity, not less. We need more production, not less. This bill won’t solve our problems overnight, but it will reverse a long course of going in the wrong direction when it comes to meeting our energy needs."

The legislation approved today will streamline burdensome environmental and energy regulations that affect the construction and maintenance of refineries. This will allow us to get old facilities back online sooner, and new facilities built faster and more efficiently. The legislation will also limit "boutique fuels" that have driven up gasoline prices by artificially limiting supply. This change will have a direct impact by lowering prices at the pump. Additionally, the bill strengthens the Federal Trade Commission’s powers to investigate and punish price gouging in the wake of Hurricanes Katrina and Rita and into the winter months as home heating bills come due.

"We have a very basic problem of not enough supply with continually increasing demand," Dreier said. "We must find solutions that increase our gasoline supplies while encouraging conservation to reduce demand. Gas prices today clearly demonstrate that we can’t wait any longer to reform the policies that dictate our energy supply."