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• U.S. Department of State

Summary

The high price of gasoline was an important consideration during the debate on the Energy Policy Act of 2005 (EPACT 2005), P.L. 109-58. As prices continued to surge, the continuing crisis renewed attention on some issues that were dropped or compromised in the debate over P.L. 109-58, as well as to a number of initiatives to reduce the impact of high prices on consumers. However, the 109th Congress adjourned after passing only one of them: a measure lifting some restrictions on oil and gas leasing in the Gulf of Mexico. Continued high gasoline prices, and the change in leadership in the 110th Congress, put the energy issue in the forefront, and after much debate the Energy Independence and Security Act of 2007 (H.R. 6, P.L. 110-140) was passed and signed by the President in December 2007. The main provisions of P.L. 110-140 were an increase in the Corporate Average Fuel Economy (CAFE) standards for automobiles and light trucks, and an increase in the requirement for the use of renewable fuels in gasoline, including advanced biofuels such as cellulosic alcohol starting in 2016. Numerous other proposed initiatives, including repeal of some tax benefits to domestic oil and gas producers contained in EPACT2005, provisions on price gouging, and reform of oil and gas leasing in the Gulf of Mexico, were not included in P.L. 110-140, and remain under active consideration in the 110th Congress. A large number of factors have combined to put pressure on gasoline prices, including increased world demand for crude oil and limited U.S. refinery capacity to supply gasoline. The war and continued violence in Iraq have added uncertainty, and threats of supply disruption have added pressure, particularly to the commodity futures markets. The gasoline price surge has stimulated much legislative activity, but without the urgency of previous energy crises. In part, this may be due to the fact that there has been no physical shortage of gasoline or lines at the pump. In addition, the expectation of former crises -- that prices were destined to grow ever higher -- has not been prevalent.

Related Legislation:
• H.R.6

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