Dear Mr. Rinaldi :



Thank you for contacting me regarding high gas prices and taxes on gasoline . I appreciate hearing from you.



I share your concerns about the negative impact that the rising price of gas is having on Georgia 's families. The price of crude oil has reached historic highs on the New York Mercantile Exchange. Asian economies continue to boom, creating soaring demand, and many oil producing regions are curbing output due to severe weather. Several of the countries from which the United States imports oil are experiencing political and social unrest. All of these factors create a perfect storm that leads to the high prices at the pump today.



Although this is not an excuse, the United States is dependent on foreign sources of oil, and, while gas prices have gone up recently, this has been a problem in the making for several decades. During this time, the United States has reduced drilling options and our refining capacity has remained stagnant for over 30 years. All of this has led to our current 60% dependency on foreign oil.



Recently, with my support the Senate passed H.R. 6022, the " Strategic Petroleum Reserve Fill Suspension and Consumer Protection Act of 2008." H.R. 6022 suspends the filling of the Strategic Petroleum Reserve until the end of the year unless the price of oil averages $75 per barrel for 90 days. This suspension will not significantly reduce the price of oil on its own, but it shows that Congress recognizes the importance of increasing supply.



I am working hard to find both short-term and long-term solutions to give relief to the pain that Georgians feel at the pump. To help give immediate relief from high gas prices, I have cosponsored S. 2890, a bill introduced by Senator John McCain that would temporarily suspend the 18.4 cent-per-gallon federal gas tax and the 24.4 cent-per-gallon diesel tax from Memorial Day to Labor Day. Gas is projected to reach record highs this summer and the suspension of this tax is one of the things Congress can do to give some immediate relief to struggling families. The suspension of the federal gas tax will not ultimately solve this problem but it will give Americans some much needed relief during the busiest travel season of the year. This legislation will not disturb the Highway Trust Fund and ensure that it remains whole by transferring resources from the General Treasury.



Recently, I cosponsored S. 295 8, the " American Energy Production Act of 2008 ." This bill would make areas of the Outer Continental Shelf (OCS) and the Arctic National Wildlife Refuge (ANWR) more accessible to oil and gas leasing activities. S. 2958 would also suspend filling the Strategic Petroleum Reserve for 180 days after enactment and promote the exploration of oil s hale and the development of other alternative resources.



I have also cosponsored S. 2758, the " American Energy Independence and Security Act of 2008," which would open up to 2,000 acres of the Arctic coastal plain in northern Alaska to oil and gas development if the world price of oil reaches $125 a barrel for five consecutive days. Research indicates that energy development and environmental protection can co-exist as long as high standards and regulations are implemented. Although oil and gas could not be extracted from ANWR in the near-term, it would signal that the U.S. is willing to increase our domestic production, and thereby drive down the price of oil on the world market.



To address this issue over the long term, I support policies that will make our country less vulnerable to fluctuating gas prices by promoting renewable energy sources, developing alternative sources of energy like hydrogen, encouraging greater use of ethanol and biodiesels, and increasing domestic refinery capacity and domestic sources of fuel. I t is essential that Congress provides a strong energy policy that includes domestic oil and gas development to help stabilize energy markets, generate economic growth, and lessen our dependence on foreign oil.



I was pleased to see that Congress passed and the President signed H.R. 6. This legislation contains an aggressive new renewable fuel standard (RFS) that requires fuel producers to include a certain amount of alternative fuel in their product. There are several opportunities for Georgia , which traditionally has not been a large producer of biofuels, to participate in the development of renewable fuel sources.



The RFS, which requires 36 billion gallons of renewable fuels in America 's motor fuels by 2022, included a minimum requirement for advanced biofuels, like cellulosic ethanol. 21 of the 36 billion gallons of renewable fuel required by 2022 must come from advanced biofuels. This emphasis on advanced biofuels is consistent with legislation I introduced, S. 386, the "Cellulosic Ethanol Incentive Act of 2007."



The temporary suspension of the federal gas tax and these other proposals are a good start. In addition, this is an issue that touches all Americans. I will continue to work with my colleagues to find bipartisan answers that are the right answers for America that address your concerns.




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The temporary suspension of the federal gas tax and these other proposals are a good start.