[Congressional Record Volume 146, Number 85 (Thursday, June 29, 2000)]
[Extensions of Remarks]
[Page E1153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         INTRODUCTION OF THE FUEL EXCISE TAX RELIEF ACT (FETRA)

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Wednesday, June 28, 2000

  Mr. COLLINS. Mr. Speaker, today I am introducing the Fuel Excise Tax 
Relief Act (FETRA), for a moratorium on Federal fuel excise taxes until 
March 31, 2001.
  Fuel is not a luxury, it is a necessity for Americans. It is 
necessary for a dad commuting to his job or a soccer mom picking up her 
children. Higher fuel costs don't stop at the pump because the cost of 
shipping is built into the price of every product purchased by families 
and businesses across the country.
  There is not one Member in this Chamber whose constituents are not 
daily suffering sticker shock when they go to the gas pump, and 
wondering why, for the past 6 months, nothing has been done about gas 
prices.
  A few months, ago, Secretary of Energy Bill Richardson admitted he 
had been asleep at the switch, and promised Americans that prices would 
soon decline, thanks to his arm-twisting of OPEC.
  Perhaps we should be asking if Mr. Richardson was twisting OPEC's arm 
the wrong direction and convincing the oil states to restrict 
production. Certainly, 3 months later, gas prices did not go lower, but 
went higher.
  These skyrocketing fuel prices are borne on the backs of working 
families across this country, because they have an impact on the cost 
of every product or service that depends upon transportation.
  I am concerned that high fuel prices could affect the economy, just 
as they did after the oil shocks of 1973 and 1979. Both resulted in 
higher interest rates and recessions.
  Congress must take both short-term and long-term action now.
  Presently, the United States is dangerously dependent upon foreign 
oil. We must work more aggressively with OPEC to increase supply. We 
must explore the use of the Strategic Petroleum Reserve to temporarily 
increase the supply. We should allow environmentally responsible oil 
drilling to increase domestic supply.
  We should also take steps to ensure that our environmental 
regulations protect the environment without driving independent 
producers and refiners out of business. When they are gone, competition 
decreases, and prices rise.
  We can also encourage the use of mass transit and build new systems. 
Tax and investment incentives will help further develop technology for 
fuel cells, electric cars, hybrid cars, and alternative fuel vehicles.
  All of these responses take a while to affect prices at the pump. But 
there is one act Congress can take to provide immediate relief to 
America's working families.
  This would be to pass the Fuel Excise Tax Relief Act (FETRA) which 
imposes a moratorium on Federal fuel excise taxes until March 31, 2001. 
1 will shortly be introducing this legislation with several colleagues, 
and I invite your support.
  FETRA would provide relief to every American of every income strata. 
It would reduce transportation costs which affect the price of every 
good or service purchased by consumers. It imposes a moratorium on the 
federal fuel excise taxes: cutting 18.3 cents per gallon on gasoline, 
24.3 cents per gallon on diesel, and 4.3 cents per gallon on aviation 
jet fuel.
  The FETRA tax moratorium will be effective upon enactment and end 
March 31, 2001. This will give the new administration and new Congress 
time to draw up something that has been lacking the past 8 years--a 
coherent energy policy.
  FETRA also holds the transportation trust funds harmless from any 
revenue shortfalls, and will make up the difference out of general 
funds. None of our infrastructure projects will be affected by FETRA.
  This tax relief is long overdue for American consumers. To ensure 
they get the benefit of this tax relief, FETRA directs the Comptroller 
of the United States to report to Congress on whether the tax cut is 
being passed through to consumers. Additionally, the act requires the 
Administration to prepare a report on changes in the prices of 
gasoline, diesel and other fuels over the previous 12 months, and the 
impact on prices of the reformulated gasoline mandate, and the 
feasibility and appropriateness of maintaining the reformulated fuel 
mandate.
  Mr. Speaker, The American people are looking toward Congress for 
leadership on this issue. I agree that we must work on long-term and 
medium-term solutions to high fuel prices, but FETRA is where we should 
start.

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