Reaction Of Senator Patrick Leahy To The President's Directive Creating A Northeast Home Heating Oil Reserve

July 10, 2000

[President Clinton today (Monday) directed Energy Secretary Bill Richardson to establish a home heating oil reserve in the Northeast. The reserve is intended to reduce the risks of shortages this winter and beyond. Clinton also calls on Congress to permanently authorize the new Northeast reserve by acting on legislation like the bill introduced by Sen. Christopher Dodd (D-Conn.) and cosponsored by Sen. Patrick Leahy and other Northeastern senators. That bill, the Home Heating Oil Price Stability Act (S.2047), authorizes $125 million over 20 years. Leahy also cosponsored an energy policy amendment this year that includes a Northeast reserve, and he signed letters to Senate leaders and to the President urging creation and funding of the reserve. Leahy commended the President for his action today. Following are Leahy's comments after the President's announcement:]

"I commend the President for acting now instead of waiting for Congress to come to grips with the need for a Northeast reserve. This is a good first step toward meeting the heating fuel shortage and price spikes that we know are coming.

"It is warm now but Vermonters know that, in heating oil terms, winter already is just around the corner. Oil refiners are on a path to another heating oil shortfall for this winter that would be worse than last winter, when scarce reserves pushed prices up to nearly two dollars a gallon -- twice the 1998 price. The potential for a crisis this winter looms large and we must do all we can to ensure that Vermonters are not confronted with heating oil stocks that are too thin and too costly.

"The President has taken an historic first step to create a Northeast reserve. Now Congress needs to get serious about oil shortages by acting on our legislation to permanently authorize the Northeast reserve. Congress also needs to stop ignoring our oil over-dependency. Another step we need is action on incentives for alternative energy development."