September 29, 2004

WASHINGTON -- Together with a bipartisan group of House colleagues, Wisconsin Congressmen Paul Ryan, Mark Green, Jim Sensenbrenner and Tom Petri introduced legislation today that would stop the spread of “boutique” - or highly specialized - fuels and help prevent the gasoline price spikes that have plagued Wisconsin in recent years.

Their legislation, the Boutique Fuels Reduction Act of 2004, would tackle the problem of tight gasoline supply that arises from certain areas’ required use of boutique fuels. Wisconsin drivers have suffered in recent years from sudden, seasonal gas price increases due to the unique type of reformulated gasoline used in some parts of the state and the inability to draw on gasoline from neighboring areas when supply disruptions such as refinery fires occur.

“We have to stop our fuel system from becoming even more fragmented and driving up prices,” Ryan said. “The system we have now is unnecessarily complex, squeezes drivers’ and Wisconsin businesses’ budgets, and only makes sense for the companies that produce boutique fuels. We are continuing to fight for a simpler system that will help keep costs down and air quality up.”

"Shrinking the number of boutique fuel blends is one way we can help work to lower and stabilize our gas prices," Green said. "The current hodgepodge system may make sense in some bureaucrat's cubicle in Washington, but it sure doesn't make sense to folks here in Wisconsin who've been getting pinched at the gas pump."

"We need to do everything possible to bring the retail price of gasoline back down, and soon," said Petri. "For most of us, affordable gas is not a luxury. This bill will help, and we need to move forward with it."

“Just about every year, as summer approaches, and again around the Labor Day weekend, it costs more for my constituents to fill up their car with gas than at other times of the year. Boutique fuels unique to our state are a big reason for these hikes, because in times of fuel shortages, Wisconsin is unable to supplement its supply from neighboring states. I am thus pleased to introduce this bill, together with my colleagues from the Wisconsin delegation, as it will help lighten Wisconsin’s fuel problems, instead of drivers’ wallets,” Sensenbrenner said.

The three major components of the proposal are the following:

• The legislation would cap the number of boutique fuels that can be used in each of the five federally defined distribution regions to prevent further proliferation of boutique fuel “islands” (areas that rely on a specialized type of fuel used nowhere else in the region.)
  
  
• It would codify the Environmental Protection Agency’s existing authority to waive fuel requirements for up to 20 days in the event of a severe supply disruption.
  
  
• The bill also calls for a study by the U.S. Environmental Protection Agency and the U.S. Department of Energy that makes recommendations to Congress on creating a federal fuels system that maintains high air quality standards, maximizes supply, improves fungibility and lowers overall prices.