Collierville Herald
September 8, 2005 

Scare Buying Zaps Fuel Supply  

By Ed Farrell 

            With record gasoline prices continuing to climb in the wake of Hurricane Katrina, Tennessee’s Attorney General is asking consumers to report price gouging, and at least one state Senator is calling for a redoubling of efforts to increase the use of alternative energy. 

            Most of Collierville’s gas stations were pumped dry by Thursday night, and those that did have fuel sparked long lines and high prices. 

            But by the conclusion of the Labor Day weekend, the gas was once again flowing to Collierville motorists. 

            Sen. Mark Norris praised Attorney General Paul Summer’s promise to “work closely” with the state’s Department of Consumer Affairs “to stop any price gouging” in Tennessee even if no actual state of emergency has been declared. 

            “I’m very concerned about the situation,” Norris said.  “I’m just like everybody else, I have to drive 30 miles into Memphis to work, and it’s 400 miles round trip to Nashville.  But I’m most concerned about the impacts this is having on our senior citizens and those on fixed incomes.” 

            Collierville, like the state of Tennessee, has laws against price gouging, but they only come into play with a declaration by the mayor of a state of emergency. 

            Summers said the same rule applies to Tennessee, “however, we will take action against anyone who artificially inflates prices.” 

            Other local legislators said the time could be near for a mandatory price cap on gasoline. 

            “I would support a price cap, and I would hope the president would too,” said Rep. Curry Todd of Collierville. 

            “I think somebody has to do something about this.  High fuel prices are sending a dangerous ripple throughout our economy…they are impacting everything.” 

            Todd said working families are among the worst hit with higher prices at the pump and higher prices at the store; higher travel costs…all across the board, prices are climbing and everyone is pointing at the price of fuel as the cause. 

            “This is absolutely devastating to our economy,” Todd said.  “Whatever I can do to make my voice heard, I’ll do it.  This needs to be resolved before it gets further out of hand.” 

            Norris said he did not favor a price cap, opting instead to depend on supply and demand to resolve the situation –an admittedly painful, but logical solution. 

            “As painful as it is, I think the free market must prevail,” Norris said.   

            Norris said that even though disasters such as Katrina have made a bad situation even worse, no one should be particularly surprised with the steady increase of fuel prices. 

            “This has been the forecast for a number of years,” Norris said.  “Short term, if the price of fuel gets too  high, and the pain too great, then people are just going to have to reduce their consumption.  And when consumption is reduced, the price will have to come back down.” 

            Norris, who heads the state’s Transportation Commission, said greater emphasis would have to be placed on alternative fuel production. 

            “The technology is there and the alternatives are there…all you need to have are the economics to make it work,” Norris said.  “I’ve worked for four years on the development of legislation that would make the creation of alternative fuels a priority in Tennessee.” 

            Norris’ solution:  The remarkably versatile soybean. 

            “It’s called soybean diesel…biodiesel,” Norris said.  “And the technology right now is expensive…but when the overall cost of fuel is expensive, the incentive to look at alternatives is there.  Now is the time, because when fuel costs are low, the incentives are low.” 

            Norris’ bill, the Processing Cooperative Act, allows traditional farmer’s cooperatives to explore incentives with outside investors that could finance refineries that would transform soybeans into fuel. 

            “There are other alternatives as well…all kinds of them, but they have to be economically feasible to work, and this would work.” 

            Norris said he is also working to push Gov. Bredesen to “repay” millions of dollars to the state’s road funds—money Norris said the governor “borrowed” from the account to use for other state purposes. 

            Recent disclosures by Bredesen that the state has received more than $100 million over budget sparked a letter from Norris. 

            “I was pleased to read that revenues for the fiscal year were above projections,” Norris wrote.  “In light of the surplus…I write to respectfully request you completely restore funding for transportation in next year’s budget.” 

            Norris said since becoming governor, Bredesen has taken “more than $217 million generated by user fees for transportation” and “diverted” the funds “for other state needs,” while all the while neglecting ongoing increases in the needs for the state’s roads and other transportation issues. 

            “Tennessee’s infrastructure needs have continued to grow (by 57 percent) since you took office,” Norris said. 

            Norris said federal transportation funds to Tennessee were expected to increase by as much as 19 percent in 2006, and the state should increase its funding by at least that amount. 

            “…this will be required if we are to embrace this opportunity to invest in the future.”