House Passes Bill Boosting New Refineries
he House Friday narrowly passed a Republican-sponsored bill to speed the expansion of oil refineries in response to the disruption of fuel supplies caused by Hurricanes Katrina and Rita, Bloomberg reported.
Rep. Joe Barton (R-Texas), who drafted the $5 billion measure, said the refinery shutdowns the storms caused show the need for expansion of U.S. fuel-making capacity. The bill passed by a vote of 212 to 210.
The Gasoline for America's Security, or GAS Act, would limit to six the different blends of gasoline and diesel fuel that refiners would be required to produce, reversing a trend of using so-called "boutique" fuels to satisfy clean air demands, the Associated Press reported.
The bill would give the federal government greater say in locating a refinery and directs the president to select a number of closed military bases and other federal land available for refineries, the AP reported.
No Democrats voted for the legislation. The Senate has yet to introduce a similar bill, Bloomberg said.
Close to 20% of U.S. refinery capacity remains shut down because of the two hurricanes, including four in Louisiana and Mississippi that were flooded when Katrina struck on Aug. 29 and seven more shut by wind damage and power disruptions when Rita came ashore Sept. 24, Bloomberg reported.
The average U.S. pump prices for regular gasoline and diesel fuel have both topped $3 a gallon for the first time following the storms.
Benchmark light sweet crude oil rose 44 cents to $61.80 a barrel Friday on the New York Mercantile Exchange, the first gain in five sessions, Bloomberg said. Oil hit a record $70.85 the day after Katrina hit.
