OAK BROOK, Ill. -- Gasoline prices, energy policy and alternative fuels continue to be hot buttons for lawmakers, both at the federal and state levels. And politiciansmostly Democratshave continued to line up to decry record oil company profits because of continued rising fuel prices.
Here is a sampling of some recent politically charged petroleum activity around the country:
WASHINGTON, D.C.
Democratic Whip Steny Hoyer (D-Md.), Representatives Mark Udall (D-Colo.), Hilda L. Solis (D-Calif.) [image-nocss] and Diana DeGette (D-Colo.) recently called for a re-examination of Republican energy policies. The Republican majority, they said, has blocked efforts to ban market manipulation and rewarded oil companies with billions in new subsidies, rather than boosting investing in alternative fuels and energy efficient technology.
Democrats energy proposals include:
The PROGRESS Act (Program for Real Energy Security), which would launch a major national effort like the Manhattan Project to achieve energy independence; The Innovation Agenda, which calls for achieving energy independence through investments in technology; The Federal Response to Energy Emergencies Act (HR 3936), which provides the Federal Trade Commission (FTC) with the explicit authority to investigate and punish those who artificially inflate the price of energy; The Energy Consumer Relief Act of 2005 (HR 4479), which would roll back billions in tax subsidies to oil and gas companies and make that funding available to bring down heating costs, as well as tax credits for farms and as grants for small businesses; The Biofuels Act, which would make an unprecedented commitment to renewable biofuels like ethanol and biodiesel.INDIANA
Indiana House Democrat Leader B. Patrick Bauer said late last week that he will push to permanently repeal Indiana's gasoline sales tax during the 2007 session of the Indiana General Assembly. He also called on Gov. Mitch Daniels to offer immediate relief by temporarily suspending the tax. Daniels is reportedly cool to the idea. Bauer also urged Attorney General Steve Carter to look into possible price gouging at the pump. Carter refused the request.
MICHIGAN
Michigan Governor Jennifer Granholm criticized Republican leaders in Washington for celebrating the first anniversary of the passage of federal energy legislation while gasoline prices and oil companies' profits soar to new record highs.
Last week, Granholm rolled out her first new campaign ad, reportedly touting her record against gasoline gougers.
In late July, as part of the Ethanol Pump Tour sponsored by the National Corn Growers Association (NCGA), Granholm joined IRL IndyCar Series drivers Buddy Rice, Vitor Meira, Jeff Simmons and Kosuke Matsuura at a Marathon station in Ypsilanti, Mich. to pump the lowest-priced fuel in the stateE-10 unleaded fuel, a 10% ethanol/gasoline blend, for $2.20 per gallon.
ILLINOIS
U.S. Sen. Dick Durbin (D-Ill.) and state Rep. Bob Flider (D) met with small-business owners at the Millikin Court building in Decatur, Ill., recently for a roundtable discussion focused on legislative solutions to high gasoline prices and driveoffs, said The Herald & Review.
Meanwhile, Illinois State Treasurer and GOP gubernatorial nominee Judy Baar Topinka called on Governor Rod Blagojevich to call a Special Session of the General Assembly to provide motorists with tax relief from high gasoline prices.
She also has outlined a plan that begins to phase out the state sales tax on gasoline after gasoline prices reach $2 per gallon and would cap the state sales tax on gasoline when prices are $2.50 and higher.
NEW YORK
New York Gov. George E. Pataki has signed legislation that will prohibit the use of exclusivity contracts between fuel distributors and gas stations that have limited the availability of renewable fuels for consumer use in their vehicles. The new law will exempt renewable fuels from the provisions of any future motor fuel franchise agreements between fuel providers and retail stations.
Under these agreements, stations are not allowed to purchase or sell fuels from a source other than the main distributor. Since most major petroleum fuel distributors do not offer E85 or other renewable fuels in New York state, many stations are contractually prohibited from offering renewable fuels to their customers. With the signing of this bill into law, future contracts cannot prohibit or discourage a station from selling altfuels.
The exclusivity' agreements serve no purpose other than protecting the interests of fuel providers at the expense of motorists who want to use E85, biodiesel or other renewable fuels, Pataki said.
The new law applies to E85, biodiesel, hydrogen and compressed natural gas (CNG). Distributors who violate the law by entering into exclusivity contracts will be subject to a penalty of $1,000. If the distributor does offer renewable fuels, they are allowed, under franchise agreements, to require the stations to use their brands. The law takes effect immediately and applies to all subsequent franchise agreements.
There are only a few stations in the state where drivers can purchase renewable fuels. By prohibiting exclusivity contracts, the state will eliminate a barrier to renewable fuel access. The New York State Thruway Authority plans to install renewable fuel pumps at all 27 Thruway travel plazas. A groundbreaking for the first of these pumps was held July 13 at the New Baltimore Plaza south of Albany. The pump is expected to be operational this fall.
NORTH CAROLINA
Larry Kissell, a Democratic candidate for Congress from North Carolina, sold gasoline for $1.22 per gallon late last week, reported the AP. Kissell said that was the price of gasoline when his opponent, Representative Robin Hayes (R), first took office in 1998. His campaign covered the difference between the $1.22 and the $2.89 a gallon price for regular unleaded at Benjy Dunn's Filling Station in Biscoe.
About 500 motorists took advantage of Kissell's offer, lining up at the station more than four hours before the cheap fuel went on sale.
WISCONSIN
Last week, Wisconsin Gov. Jim Doyle today proposed that the federal government provide a refund to American consumers and make a major new investment in renewable energy by repealing the $8 billion in tax breaks given to big oil companies in the 2005 Energy Policy Act. Doyle sent a letter to the Wisconsin Congressional delegation urging them to act on this request when they return from Congress' August recess.
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