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For Immediate Release Contact: Betsy Hart
June 12, 2008 (202) 226-8555

RURAL WORKING GROUP: RURAL AMERICA SUFFERS MOST
FROM HIGH PRICE OF GAS

Study Showing “Disparity Between Rural America and the Rest of the Country” Highlights Need to Move Critical Energy Legislation now

June 12th, 2008, Washington, DC – Today, U.S. Reps. Stephanie Herseth Sandlin (D-SD) and Bob Etheridge (D-NC), co-chairs of the House Rural Working Group, highlighted findings reported by the New York Times this week showing that the price of gasoline is hitting those who live and work in rural America especially hard and called for more to be done to recognize and ease the burden on rural American families and businesses.

Citing a “disparity between rural America and the rest of the country,” the New York Times reported in a front page article that “Gasoline prices reached a national average of $4 a gallon for the first time over the weekend, adding more strain to motorists across the country. But the pain is not being felt uniformly. Across broad swaths of the South, Southwest and the upper Great Plains, the combination of low incomes, high gas prices and heavy dependence on pickup trucks and vans is putting an even tighter squeeze on family budgets.”

Specifically, the article detailed a study conducted by the Oil Price Information Service, finding that while Americans living in rural areas of the country pay sometimes as much as 15.6% of their income, those living in the northeast, with the exception of rural Maine, are paying the least owing in large part to higher incomes, shorter commutes and a greater availability of public transportation.

In light of the continued and increased effect of high gas prices on rural America, Herseth Sandlin and Etheridge urged their colleagues and the administration to enact vital policies that are stalled due to opposition in Congress or in the White House. They also highlighted legislation that has already become law.

Legislation that has been signed into law or has sufficient support in Congress to override a Presidential veto.

• Energy Independence and Security Act of 2007-Historic energy legislation including a new and more aggressive Renewable Fuels Standard, along with provisions to combat oil market manipulation and increase fuel efficiency to 35 miles per gallon in 2020. This bill was signed into law on December 19, 2007.

• Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act – This bill will suspend additions to the Strategic Petroleum Reserve, starting June 30th and through the end of the year, as long as the price of crude oil remains above $75 per barrel. This is a critical first step for hardworking families, businesses and the economy, which in the past has brought gas prices down. The President, who was previously opposed, suspended shipments and signed the bill because of overwhelming bipartisan support in Congress.

• Farm Bill – The new Farm Bill increases Commodity Futures Trading Commission oversight authority to detect and prevent manipulation of energy prices. Additionally, the Energy Title contains provisions that provide incentives for the enhanced production of renewable sources of energy while also providing for further development and research. President Bush has threatened to veto this bill, but sufficient support exists in Congress to override a veto.

Legislation that has passed in the House but is held up due to opposition and veto threats.

• Renewable Energy and Job Creation Act – Passed the House May 21, 2008. This legislation will extend and expand tax incentives for renewable energy, including a one year extension of the critical Production Tax Credit for wind energy. A recent study showed that allowing the renewable energy incentives to expire would lead to about 116,000 jobs being lost in the wind and solar industries alone through the end of 2009. 159 Republicans voted against this legislation and administration has opposed the bill.

• Energy Price Gouging Prevention Act – Passed the House on May 23, 2007. This bill would provide immediate relief to consumers by giving the Federal Trade Commission (FTC) the authority to investigate and punish those who artificially inflate the price of energy. It will ensure the federal government has the tools it needs to adequately respond to energy emergencies and prohibit price gouging. 140 Republicans voted against this bill, and President Bush has threatened to veto it.

• No Oil Producing and Exporting Cartels (NOPEC) Act – Passed the House May 22, 2007. This legislation would enable the Department of Justice to take legal action against foreign nations for participating in oil cartels that drive up oil prices globally and in the United States. 67 Republicans voted against this bill, and President Bush has threatened to veto it.

Herseth Sandlin said, “Rural Americans face unique challenges of distance and geography when it comes to driving to work, to school, and to the grocery store. It’s not surprising that families in rural America are putting a higher percentage of their incomes toward fuel costs, but we need to do something to address this disparity. In addition to the actions Congress has already taken to reduce the price of gasoline for hard working Americans like halting further contributions to the strategic petroleum reserve, we must maintain our commitment to developing a robust biofuels industry. By capitalizing on the contributions rural America stands ready and willing to make, we lower the cost of fuel and provide opportunities for economic development in areas of the country with predominantly agricultural economies.”

Etheridge (R-NC), Co-Chair of the Rural Working Group added, “Rural Americans are being hit particularly hard by high gas prices because they have longer commutes to work, to school, to the grocery store and to the doctor. And farm families must rely on fuel for their equipment. America needs a comprehensive energy solution that will end our dependence on foreign oil. We can do that by growing our own fuel right here at home in our fields. The new Farm Bill will for the first time include an energy title that will turn that vision into a reality and make rural America a part of the solution to high gas prices.”

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