Cliff Stearns: “I am here to speak on a growing controversy, the controversy of who is to blame for the high gas prices, particularly in…”

“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.”