State of Illinois
92nd General Assembly

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 1                          HOUSE RESOLUTION

 2        WHEREAS, The  House  Special  Committee  on  Gas  Pricing
 3    conducted  fact-finding  public hearings during 2000 in order
 4    to investigate the reasons  for  the  dramatic  increases  in
 5    Illinois  gasoline  and  to  make  recommendations  on  State
 6    policies that may impact pricing; and

 7        WHEREAS,  The  House Special Committee issued a report in
 8    January   2001   containing   seven   findings    and    four
 9    recommendations; and

10        WHEREAS,  The  Governor  has created an Energy Cabinet by
11    Executive Order Number 2, and the Energy Cabinet  is  in  the
12    process of developing a State energy policy; and

13        WHEREAS,  Evidence  and  testimony  provided to the House
14    Special Committee on Gas Pricing suggest  that  the  economic
15    forces of supply and demand alone do not sufficiently explain
16    the steep price hikes of the summer of 2000; and

17        WHEREAS,  The  closure  of Premcor's Blue Island refinery
18    could result in supply disruptions in unbranded gasoline  and
19    a repeat of steep gas spikes during the summer of 2001; and

20        WHEREAS,  Several  of  the  findings of the House Special
21    Committee on Gas Pricing contain analyses of the oil industry
22    that suggest that supply disruptions could re-occur  in  2001
23    and  beyond, leading to the repeat of steep gas spikes during
24    the summer of 2001; and

25        WHEREAS, Remaining issues require  further  investigation
26    to  understand  completely  the  reasons  for  high  Illinois
27    gasoline  prices in May and June of 2000 as well as the price
28    spikes that are likely to occur in the future; and

29        WHEREAS, The report of the House Special Committee on Gas
30    Pricing contained the following recommendations:
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 1        (1)   the Governor should direct his new  Energy  Cabinet
 2    to study and report to the General Assembly:
 3             (a)  whether  adequate  preparations  are being made
 4        during the Spring of 2001 by refiners serving Illinois to
 5        transition  to   summer-grade   Phase   II   Reformulated
 6        Gasoline;
 7             (b)  whether adequate preparations are being made to
 8        supply  Illinois'  unbranded  gas stations during 2001 in
 9        view of the closure of Premcor's Blue Island refinery;
10             (c)  whether we should recommend to the EPA a  study
11        of  the  potential  for a single standard for "clean air"
12        gasoline in Illinois, rather  than  our  current  complex
13        system  of  "boutique  fuels", to more efficiently supply
14        Illinois and Midwest markets, make it possible to correct
15        supply disruptions, and also promote clean air throughout
16        the region; and
17             (d)  whether Illinois should  lend  support  to  the
18        construction  of  additional  pipelines  or refineries to
19        serve Illinois  markets  to  reduce  the  possibility  of
20        supply disruptions;
21        (2)  Illinois  should  refrain from seeking a waiver from
22    the Phase II RFG Program, recognizing both the value of clean
23    air for the health of  Illinois  residents  as  well  as  the
24    short-lived  nature  of the difficulties encountered by local
25    refiners in producing the new blend in 2000.
26        (3)  tax incentives for enthanol should be continued,  in
27    part to keep MTBE from entering Illinois markets, which could
28    be  accomplished  by  extending the differential in sales tax
29    for ethanol past it sunset date of January 1, 2003; and
30        (4)  incentives for energy conservation should be created
31    that (i) promote the expanded  use  of  alternate  fuels  and
32    alternate  fuel  vehicles;  (ii)  enhance  the  transit check
33    program encouraging employee transit use; and (iii) encourage
34    businesses to locate close to where  workers  can  afford  to
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 1    live and with convenient access to transit; therefore, be it

 4    we respectfully request the Governor  to  direct  his  Energy
 5    Cabinet to implement the recommendations of the House Special
 6    Committee  on  Gas  Pricing and to report its findings to the
 7    Illinois General Assembly by October  31,  2001;  and  be  it
 8    further

 9        RESOLVED,  That  suitable  copies  of  this resolution be
10    delivered to the Governor  of  the  State  of  Illinois,  the
11    Speaker   of  the  Illinois  House  of  Representatives,  the
12    Minority Leader of the Illinois House of Representatives, the
13    President of the Illinois Senate, the Minority Leader of  the
14    Illinois   Senate,   and   each   member   of   the  Illinois
15    Congressional delegation.

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