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Schakowsky Takes Action to Bring Down Gas Prices

June 26, 2008
For Immediate Release:
June 26, 2008
Contact: Peter Karafotas
(202) 226-6898

SCHAKOWSKY TAKES ACTION TO BRING DOWN GAS PRICES

Washington, D.C.–U.S. Representative Jan Schakowsky (D-IL), a member of the House Energy and Commerce Committee, backed three pieces of legislation today that will help make America become more energy independent and help lower prices at the pump. The price of gasoline has nearly tripled since President Bush took office in 2001. The national average is currently $4.07 a gallon. The Chicagoland area has some of the highest prices in the country with gas reaching $4.22 a gallon.

"The skyrocketing cost of gasoline is having a devastating impact on the budgets of millions of families in Illinois and across the country who are already struggling to hold onto their jobs and their homes and to pay their bills,... said U.S. Representative Jan Schakowsky (D-IL). "Today, the Democratic-led Congress took action on several measures to address this problem. We voted on legislation to crack down on speculators who experts say are driving up the price of oil, force oil companies to use the land they have to produce energy and make public transit more affordable....

Bills considered on the House floor today included:

• The Saving Energy Through Public Transportation Act of 2008. The bill gives grants to mass transit authorities to reduce public transit fares, giving consumers a cost-effective alternative to $4.07 per gallon gasoline. The bill's $1.7 billion in mass transit grants for the next two years could also be used to expand transit services and for the escalating operating costs of public transportation and would be available to both rural and urban areas. The bill was approved by a vote of 322 to 98.

• The Energy Markets Emergency Act. The Act directs the Commodity Futures Trading Commission to use it full authority and most potent emergency tools to curtail excessive speculation and other practices distorting the energy market. Rampant speculation has been cited as one cause of the spike in gas prices. The bill was approved by a vote of 402 to 19.

• The Responsible Federal Oil and Gas Lease Act. The "Use it or Lose it... legislation forces oil companies to produce oil and gas, or diligently develop, the 68 million acres of public land they already have leased, but are not using to produce energy. The bill did not receive the two-thirds majority necessary to pass on the bill on suspension.

"While the Democratic-led Congress is taking significant steps toward finding a long-term solution to our energy crisis, the only solution my Republican colleagues have to offer is to lift the ban on off-shore drilling,... said U.S. Representative Jan Schakowsky (D-IL). "Not only would off-drilling have a devastating impact on our environment, but it also wouldn't do anything to bring down the price of gasoline for at least another ten years. American oil companies should use the 68 million acres of land they already have before they start asking for more land. The bottom line is that we can't drill our way to energy independence. Instead, we need a comprehensive energy strategy that cracks down on price gouging, unscrupulous oil speculators, windfall profits and provides a significant investment in renewable and alternative fuels....

"Every day my Republican colleagues and the Bush Administration try to blame the Democrats for the staggering price of gas,... said U.S. Representative Schakowsky. "The fact that this Big Oil Administration would point the finger at anyone but themselves is completely preposterous. For seven years, the Bush Administration and the Republicans in Congress didn't lift a finger against the oil companies. In fact, the Bush Administration gave government handouts to their friends in big oil even as the industry posted record profits. We are in this mess today because the Bush Administration and the Republican Congress refused to crack down on price gouging and it failed to develop an energy policy that would make our country energy independent....

Prior to today's votes, Democrats have taken action to make America more energy independent and bring down the cost of gasoline. Democrats have previously passed legislation that has been signed into law that will suspend the filling of the Strategic Petroleum Reserve from June 30th through the end of the year, creating more supply–and potentially putting the brakes on higher prices. The House also approved the Gas Price Relief for Consumers Act of 2008. The legislation gives U.S. authorities the ability to prosecute anticompetitive conduct committed by international cartels, like OPEC, that restricts supply and drives up prices.