[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2492 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2492

 To protect the welfare of consumers by prohibiting price gouging with 
  respect to road transportation fuel or domestic heating fuel during 
                  certain abnormal market disruptions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2007

   Mr. Upton (for himself, Mr. Blunt, Mr. Aderholt, Mr. Shimkus, Mr. 
    Roskam, Mr. Camp of Michigan, Mr. English of Pennsylvania, Mr. 
 Pickering, Mr. Hall of Texas, Mr. Kirk, Mr. Terry, and Mr. Walden of 
   Oregon) introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
   Armed Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To protect the welfare of consumers by prohibiting price gouging with 
  respect to road transportation fuel or domestic heating fuel during 
                  certain abnormal market disruptions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Motorist's Bill of Rights: 
Increasing Gas Supply, Reducing Demand, and Protecting Consumers from 
Gouging''.

         TITLE I--PROTECTION OF CONSUMERS AGAINST PRICE GOUGING

SEC. 101. PROTECTION OF CONSUMERS AGAINST PRICE GOUGING.

    (a) Conduct Prohibited.--It shall be unlawful for any supplier to 
increase the price at which that supplier sells, or offers to sell, 
road transportation fuel or domestic heating fuel in an area covered by 
a Presidential proclamation issued under section 102 by an 
unconscionable amount during the period beginning on the date the 
proclamation is issued and ending on the date specified in the 
proclamation.
    (b) Justifiable Price Increases.--
            (1) In general.--The prohibition in subsection (a) shall 
        not apply to the extent that the increase in the price of the 
        road transportation fuel or domestic heating fuel is 
        substantially attributable to--
                    (A) an increase in the wholesale cost of road 
                transportation fuel or domestic heating fuel to a 
                retail seller or reseller;
                    (B) an increase in the replacement costs for road 
                transportation fuel or domestic heating fuel sold;
                    (C) an increase in operational costs; or
                    (D) local, regional, national, or international 
                market conditions.
            (2) Other mitigating factors.--In determining whether a 
        violation of this section has occurred, there also shall be 
        taken into account, among other factors, the price that would 
        reasonably equate supply and demand in a competitive and freely 
        functioning market and whether the price at which the road 
        transportation fuel or domestic heating fuel was sold 
        reasonably reflects other additional costs or risks, not within 
        the control of the seller, that were paid or incurred by the 
        seller.

SEC. 102. ENERGY EMERGENCY PROCLAMATIONS AND ORDERS.

    (a) Scope and Duration.--The President may issue an energy 
emergency proclamation when an abnormal market disruption has occurred 
or is reasonably expected to occur. The emergency proclamation shall 
specify with particularity--
            (1) the period for which the proclamation applies;
            (2) the area or region to which it applies; and
            (3) the event, circumstance, or condition that is the 
        reason such a proclamation is determined to be necessary.
    (b) Limitations.--An emergency proclamation issued under subsection 
(a)--
            (1) may not apply for a period of more than 30 consecutive 
        days, but may be renewed for a consecutive 30-day period; and
            (2) may be issued not more than 7 days preceding the 
        reasonably expected occurrence of the event, circumstance, or 
        condition that is the reason such a proclamation is determined 
        to be necessary.

SEC. 103. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

    (a) Violation Is Unfair or Deceptive Act or Practice.--A violation 
of section 101 shall be treated as a violation of a rule defining an 
unfair or deceptive act or practice prescribed under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)).
    (b) Actions by the Commission.--The Commission shall prevent any 
supplier from violating section 101 in the same manner, by the same 
means, and with the same jurisdiction, powers, and duties as though all 
applicable terms and provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) were incorporated into and made a part of this Act. 
Any entity that violates section 101 is subject to the penalties and 
entitled to the privileges and immunities provided in the Federal Trade 
Commission Act in the same manner, by the same means, and with the same 
jurisdiction, power, and duties as though all applicable terms and 
provisions of the Federal Trade Commission Act were incorporated into 
and made a part of this title.
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this title, the Federal Trade Commission shall prescribe 
such regulations as may be necessary or appropriate to implement this 
title.

SEC. 104. PENALTIES.

    (a) Civil Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act any supplier who 
        violates this title is punishable by a civil penalty of--
                    (A) not more than $500,000, in the case of an 
                independent small business marketer of gasoline (within 
                the meaning of section 324(c) of the Clean Air Act (42 
                U.S.C. 7625(c))); and
                    (B) not more than $5,000,000 in the case of any 
                other supplier.
            (2) Method of assessment.--The penalty provided by 
        paragraph (1) shall be obtained in the same manner as civil 
        penalties obtained under section 5 of the Federal Trade 
        Commission Act (15 U.S.C. 45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) a court shall take into consideration the 
                seriousness of the violation and the efforts of the 
                supplier committing the violation to remedy the harm 
                caused by the violation in a timely manner; and
                    (B) each determination that road transportation 
                fuel or domestic heating fuel have been sold or offered 
                for sale in the area and during the period covered by a 
                proclamation issued under section 102 by an 
                unconscionable amount shall be considered a single 
                violation.
    (b) Criminal Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act, the violation of 
        section 101 is punishable by a fine of not more than 
        $1,000,000, imprisonment for not more than 2 years, or both.
            (2) Enforcement.--The criminal penalty provided by 
        paragraph (1) may be imposed only pursuant to a criminal action 
        brought by the Attorney General or other officer of the 
        Department of Justice.

SEC. 105. DEFINITIONS.

    In this Act the following definitions apply:
            (1) Abnormal market disruption.--The term ``abnormal market 
        disruption'' means there is a reasonable likelihood that there 
        will be an increase in the average price of road transportation 
        fuel or domestic heating fuel as a result of a change in the 
        market, whether actual or imminently threatened, resulting from 
        extreme weather, a natural disaster, strike, civil disorder, 
        war, military action, a national or local emergency, or other 
        similar cause, that adversely affects the availability or 
        delivery road transportation fuel or domestic heating fuel.
            (2) Road transportation fuel or domestic heating fuel.--The 
        term ``road transportation fuel or domestic heating fuel'' 
        means those products used as transportation fuel or for home 
        heating but does not include jet fuel.
            (3) Replacement costs.--The term ``replacement costs'' 
        means, with respect to a supplier to whom section 101 applies, 
        costs to that supplier determined by referencing either--
                    (A) the actual or anticipated replacement cost as 
                evidenced by bills of sale, invoices, or other 
                appropriate documentation; or
                    (B) the cost for road transportation fuel or 
                domestic heating fuel in the relevant market at the 
                time of the sale or offer for sale that is the subject 
                of a violation of section 101, plus actual storage, 
                transportation, and delivery costs.
            (4) Supplier.--The term ``supplier'' means any person 
        engaged in the trade or business of selling, reselling, at 
        retail or wholesale, or distributing road transportation fuel 
        or domestic heating fuel.
            (5) Unconscionable amount.--The term ``unconscionable 
        amount'' means, with respect to any supplier to whom section 
        101 applies, a significant increase in the price at which road 
        transportation fuel or domestic heating fuel are sold or 
        offered for sale by that supplier that increases the price, for 
        the same grade of gasoline or petroleum distillate, to an 
        amount that--
                    (A) substantially exceeds the average price at 
                which road transportation fuel or domestic heating fuel 
                were sold or offered for sale by that supplier during 
                the 30-day period immediately preceding the sale or 
                offer;
                    (B) substantially exceeds the average price at 
                which road transportation fuel or domestic heating fuel 
                were sold or offered for sale by that supplier's 
                competitors during the period for which the emergency 
                proclamation applies; and
                    (C) cannot be justified by taking into account the 
                factors described in section 101(b).

SEC. 106. EFFECTIVE DATE.

    This title shall take effect on the date on which a final rule 
issued by the Federal Trade Commission under section 5(c) of the 
Federal Trade Commission Act is published in the Federal Register.

  TITLE II--SCHEDULES FOR THE CONSIDERATION OF PERMITS FOR REFINERIES

SEC. 201. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency;
            (2) the term ``applicant'' means a person who is seeking a 
        Federal refinery authorization;
            (3) the term ``biomass'' has the meaning given that term in 
        section 932(a)(1) of the Energy Policy Act of 2005;
            (4) the term ``Federal refinery authorization''--
                    (A) means any authorization required under Federal 
                law, whether administered by a Federal or State 
                administrative agency or official, with respect to 
                siting, construction, expansion, or operation of a 
                refinery; and
                    (B) includes any permits, licenses, special use 
                authorizations, certifications, opinions, or other 
                approvals required under Federal law with respect to 
                siting, construction, expansion, or operation of a 
                refinery;
            (5) the term ``Indian lands'' means lands held in trust for 
        the benefit of an Indian tribe or individual or held by an 
        Indian tribe or individual subject to a restriction by the 
        United States against alienation;
            (6) the term ``Indian tribe'' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b);
            (7) the term ``refinery'' means--
                    (A) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                crude oil or oil originally derived from crude oil by 
                any chemical or physical process, including 
                distillation, fluid catalytic cracking, hydrocracking, 
                coking, alkylation, etherification, polymerization, 
                catalytic reforming, isomerization, hydrotreating, 
                blending, and any combination thereof, in order to 
                produce gasoline, distillate, or lubricating base oil;
                    (B) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                coal by any chemical or physical process, including 
                liquefaction, in order to produce gasoline or diesel as 
                its primary output; or
                    (C) a facility designed and operated to receive, 
                load, unload, store, transport, process (including 
                biochemical, photochemical, and biotechnology 
                processes), and refine biomass in order to produce 
                biofuel;
            (8) the term ``State'' means a State, the District of 
        Columbia, the Commonwealth of Puerto Rico, and any other 
        territory or possession of the United States; and
            (9) the term ``tribal organization'' has the meaning given 
        the term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).

SEC. 202. STATE AND TRIBAL ORGANIZATION ASSISTANCE.

    (a) Financial Assistance.--At the request of a governor of a State, 
or at the request of a tribal organization, the Administrator is 
authorized to provide financial assistance to that State or Indian 
tribe to facilitate the hiring of additional personnel to assist the 
State or Indian tribe with expertise in fields relevant to 
consideration of Federal refinery authorizations.
    (b) Other Assistance.--At the request of a governor of a State, or 
at the request of a tribal organization, a Federal agency responsible 
for a Federal refinery authorization shall provide technical, legal, or 
other nonfinancial assistance to that State or Indian tribe to 
facilitate its consideration of Federal refinery authorizations.

SEC. 203. REFINERY PROCESS COORDINATION AND PROCEDURES.

    (a) Appointment of Federal Coordinator.--
            (1) In general.--The President shall appoint a Federal 
        coordinator to perform the responsibilities assigned to the 
        Federal coordinator under this Act.
            (2) Other agencies.--Each Federal and State agency or 
        official required to provide a Federal refinery authorization 
        shall cooperate with the Federal coordinator.
    (b) Federal Refinery Authorizations.--
            (1) Meeting participants.--Not later than 30 days after 
        receiving a notification from an applicant that the applicant 
        is seeking a Federal refinery authorization pursuant to Federal 
        law, the Federal coordinator appointed under subsection (a) 
        shall convene a meeting of representatives from all Federal and 
        State agencies responsible for a Federal refinery authorization 
        with respect to the refinery. The governor of a State shall 
        identify each agency of that State that is responsible for a 
        Federal refinery authorization with respect to that refinery.
            (2) Memorandum of agreement.--(A) Not later than 90 days 
        after receipt of a notification described in paragraph (1), the 
        Federal coordinator and the other participants at a meeting 
        convened under paragraph (1) shall establish a memorandum of 
        agreement setting forth the most expeditious coordinated 
        schedule possible for completion of all Federal refinery 
        authorizations with respect to the refinery, consistent with 
        the full substantive and procedural review required by Federal 
        law. If a Federal or State agency responsible for a Federal 
        refinery authorization with respect to the refinery is not 
        represented at such meeting, the Federal coordinator shall 
        ensure that the schedule accommodates those Federal refinery 
        authorizations, consistent with Federal law. In the event of 
        conflict among Federal refinery authorization scheduling 
        requirements, the requirements of the Environmental Protection 
        Agency shall be given priority.
            (B) Not later than 15 days after completing the memorandum 
        of agreement, the Federal coordinator shall publish the 
        memorandum of agreement in the Federal Register.
            (C) The Federal coordinator shall ensure that all parties 
        to the memorandum of agreement are working in good faith to 
        carry out the memorandum of agreement, and shall facilitate the 
        maintenance of the schedule established therein.
    (c) Consolidated Record.--The Federal coordinator shall, with the 
cooperation of Federal and State administrative agencies and officials, 
maintain a complete consolidated record of all decisions made or 
actions taken by the Federal coordinator or by a Federal administrative 
agency or officer (or State administrative agency or officer acting 
under delegated Federal authority) with respect to any Federal refinery 
authorization. Such record shall be the record for judicial review 
under subsection (d) of decisions made or actions taken by Federal and 
State administrative agencies and officials, except that, if the Court 
determines that the record does not contain sufficient information, the 
Court may remand the proceeding to the Federal coordinator for further 
development of the consolidated record.
    (d) Remedies.--
            (1) In general.--The United States District Court for the 
        district in which the proposed refinery is located shall have 
        exclusive jurisdiction over any civil action for the review of 
        the failure of an agency or official to act on a Federal 
        refinery authorization in accordance with the schedule 
        established pursuant to the memorandum of agreement.
            (2) Standing.--If an applicant or a party to a memorandum 
        of agreement alleges that a failure to act described in 
        paragraph (1) has occurred and that such failure to act would 
        jeopardize timely completion of the entire schedule as 
        established in the memorandum of agreement, such applicant or 
        other party may bring a cause of action under this subsection.
            (3) Court action.--If an action is brought under paragraph 
        (2), the Court shall review whether the parties to the 
        memorandum of agreement have been acting in good faith, whether 
        the applicant has been cooperating fully with the agencies that 
        are responsible for issuing a Federal refinery authorization, 
        and any other relevant materials in the consolidated record. 
        Taking into consideration those factors, if the Court finds 
        that a failure to act described in paragraph (1) has occurred, 
        and that such failure to act would jeopardize timely completion 
        of the entire schedule as established in the memorandum of 
        agreement, the Court shall establish a new schedule that is the 
        most expeditious coordinated schedule possible for completion 
        of proceedings, consistent with the full substantive and 
        procedural review required by Federal law. The court may issue 
        orders to enforce any schedule it establishes under this 
        paragraph.
            (4) Federal coordinator's action.--When any civil action is 
        brought under this subsection, the Federal coordinator shall 
        immediately file with the Court the consolidated record 
        compiled by the Federal coordinator pursuant to subsection (c).
            (5) Expedited review.--The Court shall set any civil action 
        brought under this subsection for expedited consideration.
    (e) Applicability.--This section shall only apply to a refinery 
sited or proposed to be sited or expanded or proposed to be expanded--
            (1) in a State whose governor has submitted a request to 
        the President for the application of the process coordination 
        and rules of procedure under this section to the siting, 
        construction, expansion, or operation of any refinery in that 
        State;
            (2) on a closed military installation, or portion thereof, 
        made available for the siting of a refinery in the manner 
        provided by the base closure law applicable to the 
        installation; or
            (3) on Indian lands if the relevant tribal organization has 
        submitted a request to the President for the application of the 
        process coordination and rules of procedure under this section 
        to the siting, construction, expansion, or operation of any 
        refinery on that Indian land.

SEC. 204. DESIGNATION OF CLOSED MILITARY BASES.

    (a) Designation Requirement.--Not later than 90 days after the date 
of enactment of this Act, the President shall designate no less than 3 
closed military installations, or portions thereof, as potentially 
suitable for the construction of a refinery. At least 1 such site shall 
be designated as potentially suitable for construction of a refinery to 
refine biomass in order to produce biofuel.
    (b) Redevelopment Authority.--The redevelopment authority for each 
installation designated under subsection (a), in preparing or revising 
the redevelopment plan for the installation, shall consider the 
feasibility and practicability of siting a refinery on the 
installation.
    (c) Management and Disposal of Real Property.--The Secretary of 
Defense, in managing and disposing of real property at an installation 
designated under subsection (a) pursuant to the base closure law 
applicable to the installation, shall give substantial deference to the 
recommendations of the redevelopment authority, as contained in the 
redevelopment plan for the installation, regarding the siting of a 
refinery on the installation. The management and disposal of real 
property at a closed military installation or portion thereof found to 
be suitable for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure law applicable 
to the installation.
    (d) Definitions.--For purposes of this section--
            (1) the term ``base closure law'' means the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) and title II of the 
        Defense Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
            (2) the term ``closed military installation'' means a 
        military installation closed or approved for closure pursuant 
        to a base closure law.

SEC. 205. SAVINGS CLAUSE.

    Nothing in this Act shall be construed to affect the application of 
any environmental or other law, or to prevent any party from bringing a 
cause of action under any environmental or other law, including citizen 
suits.

SEC. 206. REFINERY REVITALIZATION REPEAL.

    Subtitle H of title III of the Energy Policy Act of 2005 and the 
items relating thereto in the table of contents of such Act are 
repealed.

                 TITLE III--FUEL CONSUMPTION EDUCATION

SEC. 301. PARTNERSHIP FOR PUBLIC EDUCATION CAMPAIGN.

    (a) Establishment.--The Secretary of Energy shall enter into a 
partnership with interested industry groups, including groups from the 
automotive, gasoline refining, and oil industries, to create a public 
education campaign that provides information to United States drivers 
about immediate measures that may be taken to conserve transportation 
fuel. This public-private partnership shall include a five member 
advisory board, to be chaired by the Secretary or his designee, which 
shall include representatives from the Department of Energy, the oil 
industry, the automotive industry, and the Congress, to be appointed by 
the Secretary. The Secretary shall appoint the advisory board not later 
than 30 days after the date of enactment of this Act.
    (b) Accessibility.--The public information campaign under this 
section shall be targeted to reach the widest audience possible. The 
education campaign shall include television, print, Internet website, 
or any other method designed to maximize the dissemination of 
transportation fuel savings information to drivers.
    (c) Cost Sharing.--The Secretary shall provide no more than 50 
percent of the cost of the campaign created under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $10,000,000 for carrying out this 
section.

                   TITLE IV--BOUTIQUE FUEL REDUCTION

SEC. 401. TEMPORARY WAIVERS.

    Section 211(c)(4)(C)(ii)(II) of the Clean Air Act (42 
U.S.C.7545(c)(4)(C)(ii)(II)) is amended by inserting after ``equipment 
failure'' the following: ``, unexpected problems with distribution or 
delivery equipment that is necessary for transportation and delivery of 
fuel or fuel additives''.

SEC. 402. REDUCTION IN NUMBER OF BOUTIQUE FUELS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended as follows:
            (1) By redesignating the clause (v) added by section 
        1541(b) of the Energy Policy Act of 2005 (Public Law 109-58; 
        119 Stat. 1106) as clause (vi).
            (2) In clause (vi) (as so redesignated)--
                    (A) in subclause (I) by striking ``approved under 
                this paragraph as of September 1, 2004, in all State 
                implementation plans'' and by inserting in lieu there 
                of ``set forth on the list published under subclause 
                (II), or if the list has been revised under subclause 
                (III), on the revised list'';
                    (B) by amending subclause (III) to read as follows:
                    ``(III) The Administrator shall, after notice and 
                opportunity for comment, remove a fuel from the list 
                published under subclause (II) if the Administrator 
                determines that such fuel has ceased to be included in 
                any State implementation plan or is identical to a 
                Federal fuel control or prohibition promulgated and 
                implemented by the Administrator. The Administrator 
                shall publish a revised list reflecting the reduction 
                in the number of fuels.'';
                    (C) in subclause (IV) by striking ``Subclause (I)'' 
                and inserting ``Neither subclause (I) nor subclause 
                (V)'' and by striking ``not'' and by striking ``if such 
                new fuel'';
                    (D) in item (aa) of subclause (IV) by inserting 
                ``if such new fuel'' after ``(aa)'' and by striking ``; 
                or'' and inserting ``, or if the list has been revised 
                under subclause (III), on the revised list'';
                    (E) in item (bb) of subclause (IV) by inserting 
                ``if such new fuel'' and by striking ``as of September 
                1, 2004.'' and inserting ``, or if the list has been 
                revised under subclause (III), on the revised list, 
                and''; and
                    (F) by striking so much of the last sentence of 
                subclause (IV) as precedes the phrase ``if the 
                Administrator'', by striking ``a new fuel'' in such 
                last sentence and inserting ``such new fuel'', and by 
                designating the remaining language in such last 
                sentence as item (cc) and adjusting the left margin 
                accordingly.
                                 <all>