"I offered this amendment because the administration has dropped the ball, and it's dropped it big time, when it comes to energy. I questioned Energy Secretary Richardson when he testified before Congress in July. He said that they were refining a plan. Now it's September, but there's still no evidence of a plan beyond begging OPEC nations to pump more oil," Grassley said. "It's unconscionable for President Clinton and Vice President Gore to sit idly by as home heating fuel prices double."
Grassley said his amendment to the Energy and Water Appropriations bill would require the administration to present a plan to Congress by September 30 for addressing the increasing costs of home heating fuel and natural gas. He said the goal is to get the administration engaged in remedying the high prices.
On July 3, Grassley wrote a letter Clinton and Richardson to draw their attention to the increasing price of natural gas. He expressed concern about the inadequacy of supplies to meet demand through the summer and into the winter and asked for information about how the President planned to respond.
Grassley said the response to his letter was shocking and frustrating. In a letter dated July 31, the President's Director of the Office of Management and Budget, Jack Lew, said thank you to the senator for stating his concerns regarding the increase in fuel costs "this past winter," rather than addressing the upcoming winter that Grassley had asked about.
"The White House staff either didn't understand what the letter said and the fact that there's a natural gas price crisis looming or they don't care," Grassley said. "American consumers needstrong, responsible leadership that will plan ahead and take the necessary steps to protect them from fuel shortages and sky-high prices."
Grassley said the home-heating oil reserve established by the President on July 10 is "a drop in the bucket." He said the two million barrel reserve may help control a spike in the price of home heating oil, but it will do nothing to help lower the day-to-day price. U.S. consumers use 11 billion gallons of home heating oil a year.
Today, natural gas is at a record high level of near $5.00 per million BTUs. Supplies hover below the five-year average. This 50 percent increase from last fall is sure to have a negative effect on the more than 80 percent of Iowa households which use natural gas to heat their homes. Home heating oil is near a 10-year high, at 98 cents per gallon, already 41 percent above the average price last fall and winter. Meanwhile, crude oil prices have reached a 10-year high.