WASHINGTON, DC - U.S. Senator Jack Reed (D-RI) today joined Senators Carl Levin (D-MI), Amy Klobuchar (D-MN), and concerned citizens in urging Congress to pass the Consumer-First Energy Act of 2008, a comprehensive energy bill that will help provide relief to consumers at the pump, bolster the economy, and invest in clean energy technology to create jobs here at home and reduce our reliance on foreign oil.

Currently, Rhode Islanders are paying $3.63 for a gallon of regular unleaded gasoline and $4.43 for a gallon of diesel, more than double what they were paying when President Bush took office in 2001.

"Today, it costs more than double to fill up the family car than it did just seven years ago when President Bush took office," said Reed. "High fuel prices affect individuals and businesses alike. We need to take immediate action to help families and businesses with the rising cost of gas and get our economy back on track. This legislation is a good first step toward ensuring that Americans are paying fairer prices at the pump that are based on supply and demand, not manipulation and speculation."

Currently, households in Rhode Island are paying an average of $2,011 more per year for gasoline than they did in 2001. For the state economy, this means that families, businesses, and farmers in Rhode Island will spend $72.3 million more on gasoline in May 2008 than they spent in January 2001. If prices remain at current levels, Rhode Islanders will be forced to spend $835.7 million more on gasoline this year than was spent in 2001.

At a press conference in Washington, DC today, Reed was joined by Josephine Powe, a senior citizen and a member of the Alliance for Retired Americans, who stated: "An extra dollar or two per gallon may not seem like a lot of money to a big oil executive, but to a senior on a fixed income it is everything. When our costs go up and our income does not, that dollar means you don't know if you're going to have enough money to buy food after you fill up the tank."

The Consumer-First Energy Act of 2008 would create a tax on "windfall profits" of the major oil companies at a special supplemental rate of 25 percent; suspend filling of the Strategic Petroleum Reserve; punish price gouging; and protect against excessive speculation in the oil market. The bill also calls for repealing the Section 199 deduction for major oil and gas companies and tightens the rules restricting the use of foreign tax credits on oil and gas related income.

"It is imperative that we crack down on market speculation and manipulation that is pushing energy prices higher than they should be. We understand that the laws of supply and demand result in a market price. However, many experts suggest that up to 25 percent of the premium for petroleum products is a result of speculation," said Reed. "This legislation will help prevent price manipulation and distortions that lead to inflated energy prices for American consumers. It also builds on the bipartisan request that Senator Snowe and I made to get the big oil companies to reinvest some of their windfall profits back into the American economy. Instead of giving oil companies $17 billion tax breaks, we should be investing those resources in new energy efficiency technologies. We need to invest in new clean energy technology to create jobs here and clean up our environment so we're less dependent on foreign oil."

A summary of the Consumer-First Energy Act of 2008 follows:

• Halt Government Purchases of Oil for the Strategic Petroleum Reserve - The Administration continues to place between 70,000 and 80,000 barrels of oil a day underground in the Strategic Petroleum Reserve (SPR), which is 97 percent full. The Consumer-First Energy Act calls for suspending through December 2008 oil purchases for the SPR. Filling could resume when the 90 day average price of crude oil recedes to $75 or less. Energy officials have stated that by halting purchases for the SPR, the price of gasoline can be reduced 2 to 5 cents per gallon.

• Stop Market Price Speculation - The Administration's failure to regulate the oil futures market has lead to exorbitant speculation. The Consumer-First Energy Act establishes two key limitations on speculation: First, the bill prevents traders of U.S. crude oil from routing transactions through off-shore markets to evade speculative limits and sets forth reporting requirements. The bill also requires the Commodities Futures Trading Commission to set a substantial increase in the margin requirement for all oil futures trades, contracts or transactions. Recently, one oil company executive indicated crude oil prices could be inflated due to speculation in the futures market.

• Protect Consumers from Price Gouging - The federal government's authority and enforcement actions are inadequate to protect consumers from artificially created spikes in retail gas prices are inadequate. The Consumer-First Energy Act would give the President the authority to declare an energy emergency should there be a shortage, disruption or significant pricing anomalies in the oil market. Once an emergency is declared, setting an "unconscionably excessive price" during such an emergency would be deemed unlawful and subject to civil penalties.

• Roll Back Tax Breaks for Oil Companies and Invest in Renewable Energy - In 2004 and 2005, the Big Oil companies received tax breaks worth $17 billion over 10 years. The Consumer-First Energy Act will roll back $17 billion in tax breaks for oil and gas companies and instead invest those taxpayer dollars to improve consumer price protection, renewable energy development, and energy efficiency technology through a designated Energy Independence and Security Trust Fund.

• Force Big Oil to Pay Their Fair Share through a Windfall Profits Tax - Since the Bush Administration came into office, the five biggest oil companies have made over half a trillion dollars in profit. The Consumer-First Energy Act creates a 25 percent windfall profits tax on companies that fail to invest in increased capacity and renewable energy sources. This provision would not apply to the profits those companies reinvested in clean, affordable, domestically produced renewable fuels, expanding refinery capacity and utilization, or renewable electricity production. The proceeds of the tax will be invested in consumer price protection, renewable energy development and energy efficiency technologies through a designated Energy Independence and Security Trust Fund.

• Stand Up to OPEC - OPEC's near-monopolistic control over oil prices has lead to record oil prices which have driven up the cost Americans pay at the pump. The Consumer-First Energy Act allows the U.S. Attorney General to bring an enforcement action against any country or company that is colluding to set the price of oil, natural gas, or any other petroleum product. Enacting this provision will make it clear to nations that participate in the oil cartel that engaging in conduct designed to fix the price of oil is illegal under U.S. law. As such, nations concerned with maintaining good diplomatic relations with the U.S. will likely be reluctant to blatantly act in a way that is counter to U.S. law.