1.Short
title; table of contents
(a)This Act may be cited
as the Consumer-First Energy Act of
2008
.
(b)The table of contents of this Act is as
follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Findings.
TITLE I—Tax provisions related to oil and gas
Sec. 101. Denial of deduction for major integrated oil
companies for income attributable to domestic production of oil, gas, or
primary products thereof.
Sec. 102. Elimination of the different treatment of foreign oil
and gas extraction income and foreign oil related income for purposes of the
foreign tax credit.
Sec. 103. Windfall profits tax.
Sec. 104. Energy Independence and Security Trust
Fund.
TITLE II—Price gouging
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Energy emergency and additional price gouging
enforcement.
Sec. 204. Presidential declaration of energy
emergency.
Sec. 205. Enforcement by the Federal Trade
Commission.
Sec. 206. Enforcement by State attorneys general.
Sec. 207. Penalties.
Sec. 208. Effect on other laws.
TITLE III—Strategic Petroleum Reserve
Sec. 301. Suspension of petroleum acquisition for Strategic
Petroleum Reserve.
TITLE IV—No Oil Producing and Exporting Cartels
Sec. 401. No Oil Producing and Exporting Cartels Act of
2008.
TITLE V—Market speculation
Sec. 501. Speculative limits and transparency for off-shore oil
trading.
Sec. 502. Margin level for crude oil.
2.Congress finds that—
(1)excessive prices
for petroleum products have created, or imminently threaten to create, severe
economic dislocations and hardships, including the loss of jobs, business
failures, disruption of economic activity, curtailment of vital public
services, and price increases throughout the economy;
(2)those hardships
and dislocations jeopardize the normal flow of commerce and constitute a
national energy and economic crisis that is a threat to the public health,
safety, and welfare of the United States;
(3)consumers,
workers, small businesses, and large businesses of the United States are
particularly vulnerable to those price increase due to the failure of the
President to aggressively develop alternatives to petroleum and petroleum
products and to promote efficiency and conservation;
(4)reliable and
affordable supplies of crude oil and products refined from crude oil (including
gasoline, diesel fuel, heating oil, and jet fuel) are vital to the economic and
national security of the United States given current energy infrastructure and
technology;
(5)the price of
crude oil and products refined from crude oil (including gasoline, diesel fuel,
heating oil, and jet fuel) have skyrocketed to record levels and are continuing
to rise;
(6)since 2001, oil
prices have increased from $29 per barrel to levels near $120 per barrel and
gasoline prices have more than doubled from $1.47 per gallon to more than $3.50
per gallon;
(7)the record prices
for crude oil and products refined from crude oil (including gasoline, diesel
fuel, heating oil, and jet fuel)—
(A)are hurting
millions of consumers, workers, small businesses, and large businesses of the
United States, and threaten long-term damage to the economy and security of the
United States;
(B)are partially due
to—
(i)the
declining value of the dollar and a widespread lack of confidence in the
management of economic and foreign policy by the President;
(ii)the accumulation
of national debt and growing budget deficits under the failed economic policies
of the President; and
(iii)high levels of
military expenditures under the failed policies of the President in Iraq;
and
(C)are no longer
justified by traditional forces of supply and demand;
(8)rampant
speculation in the markets for crude oil and products refined from crude oil
has magnified the price increases and market volatility resulting from those
underlying causes of price increases; and
(9)Congress must
take urgent action to protect consumers, workers, and businesses of the United
States from rampant speculation in the energy markets and the price increases
resulting from the failed domestic and foreign policies of the
President.
<enum>I</enum><header>Tax
provisions related to oil and gas</header>
<section display-inline="no-display-inline" id="H56A4B50A0E2B4D9299D9E4C14C2755F6" section-type="subsequent-section"><enum>101.</enum><header>Denial of deduction
for major integrated oil companies for income attributable to domestic
production of oil, gas, or primary products thereof</header>
<subsection display-inline="no-display-inline" id="idB318092B967A40DE8123F2AFED35CCBA"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of
<external-xref legal-doc="usc" parsable-cite="usc/26/199">section
199(c)(4)</external-xref> (relating to exceptions) is amended by striking
<quote>or</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, or</quote>, and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE653CAD0B443459FB344FD8D7388B5BC" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id1A92B9B1D134465A95324DEB679B37B9"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of any major integrated oil
company (as defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, gas, or any primary product
thereof during any taxable year described in section
167(h)(5)(B).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idA503BACAC1A94B759AA4B43065FDFD73"><enum>(b)</enum><header>Primary
product</header><text>Section 199(c)(4)(B) is amended by adding at the end the
following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="id33DCDA33D50D4C6DB9711D52CF4E4F79" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For
purposes of clause (iv), the term <term>primary product</term> has the same
meaning as when used in section 927(a)(2)(C), as in effect before its
repeal.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDD70BE566DA344DCBE3D773481436FF5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="id302617B3734947D287A55D5D157845A4"><enum>102.</enum><header>Elimination of
the different treatment of foreign oil and gas extraction income and foreign
oil related income for purposes of the foreign tax credit</header>
<subsection id="id2D47AC437BEA462A826E8DD948F7E236"><enum>(a)</enum><header>In
general</header><text>Subsections (a) and (b) of section 907 of the Internal
Revenue Code of 1986 (relating to special rules in case of foreign oil and gas
income) are amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id26EDA2C30D434C75BB022D56DAA033B4" style="OLC">
<subsection id="id13E8D4FD593A49B7BCF1F270C79B1057"><enum>(a)</enum><header>Reduction in
amount allowed as foreign tax under section 901</header><text>In applying
section 901, the amount of any foreign oil and gas taxes paid or accrued (or
deemed to have been paid) during the taxable year which would (but for this
subsection) be taken into account for purposes of section 901 shall be reduced
by the amount (if any) by which the amount of such taxes exceeds the product
of—</text>
<paragraph id="id1DD4E3A98223495BBF22F63D090DEFC0"><enum>(1)</enum><text>the amount of the
combined foreign oil and gas income for the taxable year,</text>
</paragraph><paragraph id="idB676C08B5B5748459147E704A48F91E1"><enum>(2)</enum><text>multiplied
by—</text>
<subparagraph id="idF37FB48262A64B4C917248BE7E85FCE2"><enum>(A)</enum><text>in the case of a
corporation, the percentage which is equal to the highest rate of tax specified
under section 11(b), or</text>
</subparagraph><subparagraph id="id52936FE776924451B473A24BCA44E4C5"><enum>(B)</enum><text>in the case of an
individual, a fraction the numerator of which is the tax against which the
credit under section 901(a) is taken and the denominator of which is the
taxpayer's entire taxable income.</text>
</subparagraph></paragraph></subsection><subsection id="id8264C579D15441D29F14AA82DDFA751C"><enum>(b)</enum><header>Combined
foreign oil and gas income; foreign oil and gas taxes</header><text>For
purposes of this section—</text>
<paragraph id="id1C179501D680401D9D52B0243998889C"><enum>(1)</enum><header>Combined
foreign oil and gas income</header><text>The term <term>combined foreign oil
and gas income</term> means, with respect to any taxable year, the sum
of—</text>
<subparagraph id="id48B256E24E6C4A64A943C8EEB3931B8F"><enum>(A)</enum><text>foreign oil and
gas extraction income, and</text>
</subparagraph><subparagraph id="id0A78B6ADD210461E92CC4EBA915245BB"><enum>(B)</enum><text>foreign oil
related income.</text>
</subparagraph></paragraph><paragraph id="id837EAA44A2334B9A94383017FA632CAE"><enum>(2)</enum><header>Foreign oil and
gas taxes</header><text>The term <term>foreign oil and gas taxes</term> means,
with respect to any taxable year, the sum of—</text>
<subparagraph id="idD99C42F916764917A0067D90B64DA8C9"><enum>(A)</enum><text>oil and gas
extraction taxes, and</text>
</subparagraph><subparagraph id="idA4D1A1136D56407081AA8A63AC348DB2"><enum>(B)</enum><text>any income, war
profits, and excess profits taxes paid or accrued (or deemed to have been paid
or accrued under section 902 or 960) during the taxable year with respect to
foreign oil related income (determined without regard to subsection (c)(4)) or
loss which would be taken into account for purposes of section 901 without
regard to this
section.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id73693604090B4C28AE49B21568013CDD"><enum>(b)</enum><header>Recapture of
foreign oil and gas losses</header><text>Paragraph (4) of section 907(c) of the
Internal Revenue Code of 1986 (relating to recapture of foreign oil and gas
extraction losses by recharacterizing later extraction income) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idFC3CB33593AF4B61B0E72F1E155D6D09" style="OLC">
<paragraph id="id571AB78F88E048F2A65D0BF9E1341159"><enum>(4)</enum><header>Recapture of
foreign oil and gas losses by recharacterizing later combined foreign oil and
gas income</header>
<subparagraph id="id5C2F95DAD38A47788A90E27134CC5B40"><enum>(A)</enum><header>In
general</header><text>The combined foreign oil and gas income of a taxpayer for
a taxable year (determined without regard to this paragraph) shall be
reduced—</text>
<clause id="id93B0F4E9FD92407FBD617CFD6474FBD1"><enum>(i)</enum><text>first by the
amount determined under subparagraph (B), and</text>
</clause><clause id="idCADD7F5A83734019B041DF545CD7C08E"><enum>(ii)</enum><text>then by the
amount determined under subparagraph (C).</text>
</clause><continuation-text continuation-text-level="subparagraph">The
aggregate amount of such reductions shall be treated as income (from sources
without the United States) which is not combined foreign oil and gas
income.</continuation-text></subparagraph><subparagraph id="id4EFEF4E6641E4CA498782254234C6521"><enum>(B)</enum><header>Reduction for
pre-2008 foreign oil extraction losses</header><text>The reduction under this
paragraph shall be equal to the lesser of—</text>
<clause id="id5514ADEB4356461698757016203345DA"><enum>(i)</enum><text>the foreign oil
and gas extraction income of the taxpayer for the taxable year (determined
without regard to this paragraph), or</text>
</clause><clause id="idA964F0B8A33244068F72F2C99FD76C02"><enum>(ii)</enum><text>the excess
of—</text>
<subclause id="idE7E5BD62CA96452D9E92BDEEB1AC8AA7"><enum>(I)</enum><text>the aggregate
amount of foreign oil extraction losses for preceding taxable years beginning
after December 31, 1982, and before January 1, 2008, over</text>
</subclause><subclause id="id90C401AD165D4E068FCE11F4CF1CAC23"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph (as in effect
before and after the date of the enactment of the
<short-title>Consumer-First Energy Act of
2008</short-title>) for preceding taxable years beginning after December 31,
1982.</text>
</subclause></clause></subparagraph><subparagraph id="id5721D069D3194CA2B0A3A31564DE5C6C"><enum>(C)</enum><header>Reduction for
post-2008 foreign oil and gas losses</header><text>The reduction under this
paragraph shall be equal to the lesser of—</text>
<clause id="idCFAA7FAC76934E49A20DEE7DD744FCF4"><enum>(i)</enum><text>the combined
foreign oil and gas income of the taxpayer for the taxable year (determined
without regard to this paragraph), reduced by an amount equal to the reduction
under subparagraph (A) for the taxable year, or</text>
</clause><clause id="id7CEA24749226435A9ACA88E80BEA01FD"><enum>(ii)</enum><text>the excess
of—</text>
<subclause id="idA09D790E0CB54F4D8D621E34A2655DEB"><enum>(I)</enum><text>the aggregate
amount of foreign oil and gas losses for preceding taxable years beginning
after December 31, 2008, over</text>
</subclause><subclause id="id5F8798227C7B448A914E9B4045DE1EDC"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph for preceding
taxable years beginning after December 31, 2008.</text>
</subclause></clause></subparagraph><subparagraph id="id1B28CB638CAC4589A31FC1DF70605CD1"><enum>(D)</enum><header>Foreign oil and
gas loss defined</header>
<clause id="idECCA0979E3E048AB9F09A38AF330A4B3"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the term <term>foreign
oil and gas loss</term> means the amount by which—</text>
<subclause id="id61DD04CD843F4B9AA811D687E947FF71"><enum>(I)</enum><text>the gross income
for the taxable year from sources without the United States and its possessions
(whether or not the taxpayer chooses the benefits of this subpart for such
taxable year) taken into account in determining the combined foreign oil and
gas income for such year, is exceeded by</text>
</subclause><subclause id="id157F87BAD40D4092BB030479AC579861"><enum>(II)</enum><text>the sum of the
deductions properly apportioned or allocated thereto.</text>
</subclause></clause><clause id="id92424400B1644A6D8C8EE0D623CD81FD"><enum>(ii)</enum><header>Net operating
loss deduction not taken into account</header><text>For purposes of clause (i),
the net operating loss deduction allowable for the taxable year under section
172(a) shall not be taken into account.</text>
</clause><clause id="idB94228F297264438AA956A52CB0C207C"><enum>(iii)</enum><header>Expropriation
and casualty losses not taken into account</header><text>For purposes of clause
(i), there shall not be taken into account—</text>
<subclause id="id8660D0CEC79F4FC281FC32EFF1B00726"><enum>(I)</enum><text>any foreign
expropriation loss (as defined in section 172(h) (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of 1990))
for the taxable year, or</text>
</subclause><subclause id="idCBD99E76CDED4C2A9D4C80754D55325A"><enum>(II)</enum><text>any loss for the
taxable year which arises from fire, storm, shipwreck, or other casualty, or
from theft,</text>
</subclause><continuation-text continuation-text-level="clause">to the extent
such loss is not compensated for by insurance or otherwise.</continuation-text></clause><clause id="id8089A710A81D43BD8667FF5DEEC4F53D"><enum>(iv)</enum><header>Foreign oil
extraction loss</header><text>For purposes of subparagraph (B)(ii)(I), foreign
oil extraction losses shall be determined under this paragraph as in effect on
the day before the date of the enactment of the
<short-title>Consumer-First Energy Act of
2008</short-title>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id9DDFCB9882B4480C94494BDE102704B5"><enum>(c)</enum><header>Carryback and
carryover of disallowed credits</header><text>Section 907(f) of the Internal
Revenue Code of 1986 (relating to carryback and carryover of disallowed
credits) is amended—</text>
<paragraph id="idDAE9164F6AC94092BE3D2D8922B78EB7"><enum>(1)</enum><text>by striking
<quote>oil and gas extraction taxes</quote> each place it appears and inserting
<quote>foreign oil and gas taxes</quote>, and</text>
</paragraph><paragraph id="idB749AFE886AD410786F877EB447F2D49"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id477246DA29C6412C81F3AA2E16178358" style="OLC">
<paragraph id="id8358214C6849487DA3DB2228A52B8042"><enum>(4)</enum><header>Transition
rules for pre-2009 and 2009 disallowed credits</header>
<subparagraph id="id79048D6051C146A2A7E3FAB60B5D1897"><enum>(A)</enum><header>Pre-2009
credits</header><text>In the case of any unused credit year beginning before
January 1, 2009, this subsection shall be applied to any unused oil and gas
extraction taxes carried from such unused credit year to a year beginning after
December 31, 2008—</text>
<clause id="id0DE23FD341C848FD8078213A783D69EF"><enum>(i)</enum><text>by substituting
<quote>oil and gas extraction taxes</quote> for <quote>foreign oil and gas
taxes</quote> each place it appears in paragraphs (1), (2), and (3), and</text>
</clause><clause id="id54DA9BA491E846E389EEA55F36FDE464"><enum>(ii)</enum><text>by computing,
for purposes of paragraph (2)(A), the limitation under subparagraph (A) for the
year to which such taxes are carried by substituting <quote>foreign oil and gas
extraction income</quote> for <quote>foreign oil and gas income</quote> in
subsection (a).</text>
</clause></subparagraph><subparagraph id="id7ED7539FB1FA4D55B3D9E489B9EB5E10"><enum>(B)</enum><header>2009
credits</header><text>In the case of any unused credit year beginning in 2009,
the amendments made to this subsection by the <short-title>Consumer-First Energy Act of 2008</short-title> shall be
treated as being in effect for any preceding year beginning before January 1,
2009, solely for purposes of determining how much of the unused foreign oil and
gas taxes for such unused credit year may be deemed paid or accrued in such
preceding
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id078E7E9A792741EF9D33617813C2748D"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 6501(i) of the Internal Revenue Code of 1986 is
amended by striking <quote>oil and gas extraction taxes</quote> and inserting
<quote>foreign oil and gas taxes</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE9D8F37FECF54DEBA293D79320A74CF3"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments
made by this section shall apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><section id="H142D1607341D4F39A9E5BBEF8E19CB5"><enum>103.</enum><header>Windfall profits
tax</header>
<subsection id="H4492C98DE6724572BF91AE740175FB9E"><enum>(a)</enum><header>In
general</header><text>Subtitle E of the Internal Revenue Code of 1986 (relating
to alcohol, tobacco, and certain other excise taxes) is amended by adding at
the end thereof the following new chapter:</text>
<quoted-block display-inline="no-display-inline" id="id75ED6C90CC0F4267B55363D4492897AD" style="OLC">
<chapter id="H0CE021CDDF5D40A3B2F5BDDB7CFE828F"><enum>56</enum><header>Windfall profits
on crude oil</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 5896. Imposition of
tax.</toc-entry>
<toc-entry level="section">Sec. 5897. Windfall profit; qualified
investment.</toc-entry>
<toc-entry level="section">Sec. 5898. Special rules and
definitions.</toc-entry>
</toc>
<section id="H5981C706013A4EFA994CC4E0C8CDE9C"><enum>5896.</enum><header>Imposition of
tax</header>
<subsection id="H6316B48CC3724603A58F5EFF955D1851"><enum>(a)</enum><header>In
general</header><text>In addition to any other tax imposed under this title,
there is hereby imposed on any applicable taxpayer an excise tax in an amount
equal to 25 percent of the excess of—</text>
<paragraph id="id49BDEF3F13324F15AD7F3B2408B5E8A4"><enum>(1)</enum><text>the windfall
profit of such taxpayer, over</text>
</paragraph><paragraph id="id76EE9C263149481D9A234B420C0EC73B"><enum>(2)</enum><text>the excess
of—</text>
<subparagraph id="id69B3C79239F14F689D0986BD9E1C86D4"><enum>(A)</enum><text>the amount of the
qualified investments of such applicable taxpayer for such taxable year,
over</text>
</subparagraph><subparagraph id="idAA6591CA2FEC45479370A230ED31CE65"><enum>(B)</enum><text>the average of
the qualified investment of such applicable taxpayer for taxable years
beginning during the 2002–2006 taxable year period.</text>
</subparagraph></paragraph></subsection><subsection id="id4D0D2AE2A60648A895CEF31A621C4AE5"><enum>(b)</enum><header>Applicable
taxpayer</header><text>For purposes of this chapter, the term <term>applicable
taxpayer</term> means any major integrated oil company (as defined in section
167(h)(5)(B)).</text>
</subsection></section><section id="id49F86AB714DE4C7BAF4334E11628A036"><enum>5897.</enum><header>Windfall
profit; qualified investment</header>
<subsection id="id717089812C354D5185FBBE1FBDAC6EEA"><enum>(a)</enum><header>General
rule</header><text>For purposes of this chapter, the term <term>windfall
profit</term> means the excess of the adjusted taxable income of the applicable
taxpayer for the taxable year over the reasonably inflated average profit for
such taxable year.</text>
</subsection><subsection id="id13B3CA3D8DD543B2B77006FCF57E3428"><enum>(b)</enum><header>Adjusted
taxable income</header><text>For purposes of this chapter, with respect to any
applicable taxpayer, the adjusted taxable income for any taxable year is equal
to the taxable income for such taxable year (within the meaning of section 63
and determined without regard to this subsection)—</text>
<paragraph id="id935CA599BED94AA7BDCAA17694B486ED"><enum>(1)</enum><text>increased by any
interest expense deduction, charitable contribution deduction, and any net
operating loss deduction carried forward from any prior taxable year,
and</text>
</paragraph><paragraph id="idF1162BA94A104216B3A0674AA3981C6A"><enum>(2)</enum><text>reduced by any
interest income, dividend income, and net operating losses to the extent such
losses exceed taxable income for the taxable year.</text>
</paragraph><continuation-text continuation-text-level="subsection">In the
case of any applicable taxpayer which is a foreign corporation, the adjusted
taxable income shall be determined with respect to such income which is
effectively connected with the conduct of a trade or business in the United
States.</continuation-text></subsection><subsection id="id5E38A64FB59441AC99807053B53B1614"><enum>(c)</enum><header>Reasonably
inflated average profit</header><text>For purposes of this chapter, with
respect to any applicable taxpayer, the reasonably inflated average profit for
any taxable year is an amount equal to the average of the adjusted taxable
income of such taxpayer for taxable years beginning during the 2002–2006
taxable year period (determined without regard to the taxable year with the
highest adjusted taxable income in such period) plus 10 percent of such
average.</text>
</subsection><subsection id="id55DE3E6033C949EB837D8764631F7C54"><enum>(d)</enum><header>Qualified
investment</header><text>For purposes of this chapter, the term <term>qualified
investment</term> means, with respect to any applicable taxpayer, means any
amount paid or incurred with respect to—</text>
<paragraph id="ID9365d0ac558c4912a1d589438fd30886"><enum>(1)</enum><text>any qualified
facility described in paragraph (1), (2), (3), (4), (5), (6), (7), or (9) of
section 45(d) (determined without regard to any placed in service date),
or</text>
</paragraph><paragraph id="ID70cfd3661e144eec9472345b4a7b6c4a"><enum>(2)</enum><text>any facility for
the production renewable fuel or advanced biofuel (as defined in section 211(o)
of the Clean Air Act 942 U.S.C. 7545).</text>
</paragraph></subsection></section><section id="idB7956C1B641D4D09B0592F282BD7B532"><enum>5898.</enum><header>Special rules
and definitions</header>
<subsection id="IDa95e81d74ff942f29f00b909bf825120"><enum>(a)</enum><header>Withholding and
deposit of tax</header><text>The Secretary shall provide such rules as are
necessary for the withholding and deposit of the tax imposed under section
5896.</text>
</subsection><subsection id="IDb2c30bea4cb94632bac2e42e5f8ab8c6"><enum>(b)</enum><header>Records and
information</header><text>Each taxpayer liable for tax under section 5896 shall
keep such records, make such returns, and furnish such information as the
Secretary may by regulations prescribe.</text>
</subsection><subsection id="idDD11EB19B6FA4EC2975BE6A4A5696BD0"><enum>(c)</enum><header>Return of
windfall profit tax</header><text>The Secretary shall provide for the filing
and the time of such filing of the return of the tax imposed under section
5896.</text>
</subsection><subsection id="IDa00341c0af1043d99d907ac0b74febdd"><enum>(d)</enum><header>Crude
oil</header><text>The term <term>crude oil</term> includes crude oil
condensates and natural gasoline.</text>
</subsection><subsection id="id64B608CA813747D0BA1F991280530E8E"><enum>(e)</enum><header>Businesses
under common control</header><text>For purposes of this chapter, all members of
the same controlled group of corporations (within the meaning of section
267(f)) and all persons under common control (within the meaning of section
52(b) but determined by treating an interest of more than 50 percent as a
controlling interest) shall be treated as 1 person.</text>
</subsection><subsection id="ID95aba55935d8461ba2065c0527bba675"><enum>(f)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this
chapter.</text>
</subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7C153EBF60E64961AA43B8C8DAFAFBD"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of chapters for subtitle E of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HB594E0669CBE4A1B8186E687E420C4F7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="chapter">Chapter 56. Windfall profit on crude
oil.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2cd7dbf5706c4dda8a6236dc39b94a94"><enum>(c)</enum><header>Deductibility
of windfall profit tax</header><text>The first sentence of section 164(a) of
the Internal Revenue Code of 1986 (relating to deduction for taxes) is amended
by inserting after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idE87FF523A9DC45ADA3D092533BE2E46C" style="OLC">
<paragraph id="IDe806831dd142469eace6e9bd46f5d094"><enum>(6)</enum><text>The windfall
profit tax imposed by section
5896.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID7EE518C6E37E413A9077A10CC1D5F814"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="id224E6DBA160344FFA4796BFCBC8E0BC6"><enum>104.</enum><header>Energy
Independence and Security Trust Fund</header>
<subsection id="H4B5E94BB18E347CC9500EA1D4127BC30"><enum>(a)</enum><header>Establishment</header><text>Subchapter
A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end the following new section:</text>
<quoted-block id="HD40462D555554B78B9D3EA00087FD963" style="OLC">
<section id="H596D0ED8F3CA4374B8C1317B05E75683"><enum>9511.</enum><header>Energy
Independence and Security Trust Fund</header>
<subsection id="HFE2F12838769457891AF4119F3874F82"><enum>(a)</enum><header>Creation of
Trust Fund</header><text>There is established in the Treasury of the United
States a trust fund to be known as <quote>Energy Independence and Security
Trust Fund</quote> (referred to in this section as the <quote>Trust
Fund</quote>), consisting of such amounts as may be appropriated or credited to
the Trust Fund as provided in this section or section 9602(b).</text>
</subsection><subsection id="H9FE4BD51457749118700EBFA50E57422"><enum>(b)</enum><header>Transfers to
Trust Fund</header><text>There is hereby appropriated to the Trust Fund an
amount equivalent to the increase in the revenues received in the Treasury as
the result of the amendments made by sections 101, 102, and 103 of the
<short-title>Consumer-First Energy Act of
2008</short-title>.</text>
</subsection><subsection id="HEE53D0E432AC4AD683001034AEF347C7"><enum>(c)</enum><header>Distribution of
amounts in Trust Fund</header><text display-inline="yes-display-inline">Amounts
in the Trust Fund shall be available, as provided by appropriation Acts, for
the purposes of reducing the dependence of the United States on foreign and
unsustainable energy sources and reducing the risks of global warming through
programs and measures that—</text>
<paragraph id="IDc2613a47064a4d7c98eca07fd0b7adc9"><enum>(1)</enum><text>reduce the
burdens on consumers of rising energy prices;</text>
</paragraph><paragraph id="id93773D3DF44A46138EFD40FB694EE2EA"><enum>(2)</enum><text>diversify and
expand the use of secure, efficient, and environmentally-friendly energy
supplies and technologies;</text>
</paragraph><paragraph id="idF812B68030CD422297D3CF58BA4EC288"><enum>(3)</enum><text>result in net
reductions in emissions of greenhouse gases; and</text>
</paragraph><paragraph id="id8FBE8BD2AE214A4EA3458F2912CA031D"><enum>(4)</enum><text>prevent energy
price gouging, profiteering, and market
manipulation.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id44112053B0B845E2893DBBCCBBD9D730"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subchapter A of chapter 98 of
such Code is amended by adding at the end the following new item:</text>
<quoted-block id="idf88033a7-6300-48a9-a4bb-3d5868904dca" style="OLC">
<toc>
<toc-entry idref="H596D0ED8F3CA4374B8C1317B05E75683" level="section">Sec. 9511. Energy Independence and Security Trust
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5005B6F488744BEB966EF5792CE5FB47"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Price
gouging</header>
<section id="ID5487AD9C12174CA2975B6EE28732C9D6"><enum>201.</enum><header> Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Petroleum Consumer Price
Gouging Protection Act</short-title></quote>.</text>
</section><section id="IDF93A0B0D89544D8F8528F4B46BFF00D6"><enum>202.</enum><header>
Definitions</header><text display-inline="no-display-inline">In this
title:</text>
<paragraph id="ID1516223817E2453F9DA998E8A091C16B"><enum>(1)</enum><header>Affected
area</header><text>The term <term>affected area</term> means an area covered by
a Presidential declaration of energy emergency.</text>
</paragraph><paragraph id="IDF33124F34FC546C6A1C9572BB1976BFE"><enum>(2)</enum><header>Supplier</header><text>The
term <term>supplier</term> means any person engaged in the trade or business of
selling or reselling, at retail or wholesale, or distributing crude oil,
gasoline, petroleum distillates, or biofuel.</text>
</paragraph><paragraph id="ID5E3F4807B40142949E62C11BE218EFEE"><enum>(3)</enum><header>Price
gouging</header><text>The term <term>price gouging</term> means the charging of
an unconscionably excessive price by a supplier in an affected area.</text>
</paragraph><paragraph id="ID9349B857A21D41EABFE1B7446CF42D6D"><enum>(4)</enum><header>Unconscionably
excessive price</header><text>The term <term>unconscionably excessive
price</term> means an average price charged during an energy emergency declared
by the President in an area and for a product subject to the declaration,
that—</text>
<subparagraph id="ID6CF1C05D13B142638F479DA4BA60B192"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID47F52CD07A00407999DB68CE1E67DB1D"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID81079FFBB27046268EBC7495ACB17056"><enum>(I)</enum><text>constitutes a gross
disparity from the average price at which it was offered for sale in the usual
course of the supplier's business during the 30 days prior to the President's
declaration of an energy emergency; and</text>
</subclause><subclause id="ID15C2754F5FDB4976848920BA5204AB9C" indent="up2"><enum>(II)</enum><text>grossly exceeds the prices at
which the same or similar crude oil, gasoline, petroleum distillates, or
biofuel was readily obtainable by purchasers from other suppliers in the same
relevant geographic market within the affected area; or</text>
</subclause></clause><clause id="IDC0711EB027144129B49414B05378FCEF" indent="up1"><enum>(ii)</enum><text>represents an exercise of unfair
leverage or unconscionable means on the part of the supplier, during a period
of declared energy emergency; and</text>
</clause></subparagraph><subparagraph id="ID34C046B6E96F48F3AE6AF52E09EF5677"><enum>(B)</enum><text>is not
attributable to increased wholesale or operational costs, including replacement
costs, outside the control of the supplier, incurred in connection with the
sale of crude oil, gasoline, petroleum distillates, or biofuel, and is not
attributable to local, regional, national, or international market
conditions.</text>
</subparagraph></paragraph><paragraph id="IDB045217AABFB4853AD9B551C556E579B"><enum>(5)</enum><header>Commission</header><text>The
term <term>Commission</term> means the Federal Trade Commission.</text>
</paragraph></section><section id="ID22453CCC2D014352BFD0877745F8C562"><enum>203.</enum><header> Energy
emergency and additional price gouging enforcement</header>
<subsection id="ID6093A03007AC4BFCB3DD06C392A46302"><enum>(a)</enum><header>In
general</header><text>During any energy emergency declared by the President
under section 204 of this title, it is unlawful for any supplier to sell, or
offer to sell crude oil, gasoline, petroleum distillates, or biofuel subject to
that declaration in, or for use in, the area to which that declaration applies
at an unconscionably excessive price.</text>
</subsection><subsection id="IDB919BB07F15D485E8C6388F53984F06F"><enum>(b)</enum><header>Factors
considered</header><text>In determining whether a violation of subsection (a)
has occurred, there shall be taken into account, among other factors,
whether—</text>
<paragraph id="ID4805417541754848BDABD02DFF750006"><enum>(1)</enum><text>the price charged
was a price that would reasonably exist in a competitive and freely functioning
market; and</text>
</paragraph><paragraph id="ID80546A557D1E44B08FDB19343A276539"><enum>(2)</enum><text>the amount of
gasoline, other petroleum distillates, or biofuel the seller produced,
distributed, or sold during the period the Proclamation was in effect increased
over the average amount during the preceding 30 days.</text>
</paragraph></subsection></section><section id="ID3D4969725B124AB1AF16D6BBEAC576DF"><enum>204.</enum><header>Presidential
declaration of energy emergency</header>
<subsection id="ID0778B72DB1CC442CB1502112A097A0B6"><enum>(a)</enum><header>In
general</header><text>If the President finds that the health, safety, welfare,
or economic well-being of the citizens of the United States is at risk because
of a shortage or imminent shortage of adequate supplies of crude oil, gasoline,
petroleum distillates, or biofuel due to a disruption in the national
distribution system for crude oil, gasoline, petroleum distillates, or biofuel
(including such a shortage related to a major disaster (as defined in section
102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5122(2)))), or significant pricing anomalies in national energy
markets for crude oil, gasoline, petroleum distillates, or biofuel the
President may declare that a Federal energy emergency exists.</text>
</subsection><subsection id="IDA8EC8240FCBB4B7394460E9A9296E4F2"><enum>(b)</enum><header>Scope and
duration</header><text>The emergency declaration shall specify—</text>
<paragraph id="IDF467DF839608498F866523CD842B653C"><enum>(1)</enum><text>the period, not
to exceed 30 days, for which the declaration applies;</text>
</paragraph><paragraph id="ID605F4A839E6C48A583C31B65C6B4926D"><enum>(2)</enum><text>the circumstance
or condition necessitating the declaration;</text>
</paragraph><paragraph id="ID168690BEEDCB4B0E9B822ABCB835E0F1"><enum>(3)</enum><text>the area or
region to which it applies which may not be limited to a single State;
and</text>
</paragraph><paragraph id="IDDBDDAC920A494327AF9D7680681FBE2D"><enum>(4)</enum><text>the product or
products to which it applies.</text>
</paragraph></subsection><subsection id="ID1E4B68635160435FB0974F3A2EF05F82"><enum>(c)</enum><header>Extensions</header><text>The
President may—</text>
<paragraph id="ID58C30147184A4F7BB5525294AA33A5E5"><enum>(1)</enum><text>extend a
declaration under subsection (a) for a period of not more than 30 days;</text>
</paragraph><paragraph id="ID8BED8971154041EB9ED4763307B8BF92"><enum>(2)</enum><text>extend such a
declaration more than once; and</text>
</paragraph><paragraph id="ID4819A04E536742629C9FB7D2CC082B87"><enum>(3)</enum><text>discontinue such
a declaration before its expiration.</text>
</paragraph></subsection></section><section id="IDA5A9755FAE0C4094A3576C4E92C927D4"><enum>205.</enum><header> Enforcement
by the Federal Trade Commission</header>
<subsection id="IDA2CF5102F6BD43BEA2ADCDABAF84D392"><enum>(a)</enum><header>Enforcement</header><text>This
title shall be enforced by the Federal Trade Commission in the same manner, by
the same means, and with the same jurisdiction as though all applicable terms
of the Federal Trade Commission Act were incorporated into and made a part of
this title. In enforcing section 203 of this title, the Commission shall give
priority to enforcement actions concerning companies with total United States
wholesale or retail sales of crude oil, gasoline, petroleum distillates, and
biofuel in excess of $500,000,000 per year but shall not exclude enforcement
actions against companies with total United States wholesale sales of
$500,000,000 or less per year.</text>
</subsection><subsection id="IDC54B3B8558B24D2388AC7E6E7FEE177B"><enum>(b)</enum><header>Violation is
treated as unfair or deceptive act or practice</header><text>The violation of
any provision of this title shall be treated as an unfair or deceptive act or
practice proscribed under a rule issued under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).</text>
</subsection><subsection id="ID491E37FD8A844131979DB7BE561689AB"><enum>(c)</enum><header>Commission
actions</header><text>Following the declaration of an energy emergency by the
President under section 204 of this title, the Commission shall—</text>
<paragraph id="IDB4033A4307C34A43A84EB78BDF6FA2FE"><enum>(1)</enum><text>maintain within
the Commission—</text>
<subparagraph id="ID779A334F37DD44A996905247EBC93990"><enum>(A)</enum><text>a toll-free
hotline that a consumer may call to report an incident of price gouging in the
affected area; and</text>
</subparagraph><subparagraph id="ID75E8BB2FD8AD4256AD47FC43A5542563"><enum>(B)</enum><text>a program to
develop and distribute to the public informational materials to assist
residents of the affected area in detecting, avoiding, and reporting price
gouging;</text>
</subparagraph></paragraph><paragraph id="ID5892DBDAA9DD4DAABFA4D9407B861406"><enum>(2)</enum><text>consult with the
Attorney General, the United States Attorney for the districts in which a
disaster occurred (if the declaration is related to a major disaster), and
State and local law enforcement officials to determine whether any supplier in
the affected area is charging or has charged an unconscionably excessive price
for crude oil, gasoline, petroleum distillates, or biofuel in the affected
area; and</text>
</paragraph><paragraph id="IDC89C8780C1A34176AB35035C8EAE3CBB"><enum>(3)</enum><text>conduct
investigations as appropriate to determine whether any supplier in the affected
area has violated section 203 of this title, and upon such finding, take any
action the Commission determines to be appropriate to remedy the
violation.</text>
</paragraph></subsection></section><section id="IDD1737FF2C9F04953845A39B14CCB3F5C"><enum>206.</enum><header>Enforcement by
State attorneys general</header>
<subsection id="IDA376EE5AFB1642B7BDF6BC58FB3DA1CE"><enum>(a)</enum><header>In
general</header><text>A State, as parens patriae, may bring a civil action on
behalf of its residents in an appropriate district court of the United States
to enforce the provisions of section 203 of this title, or to impose the civil
penalties authorized by section 207 for violations of section 203, whenever the
attorney general of the State has reason to believe that the interests of the
residents of the State have been or are being threatened or adversely affected
by a supplier engaged in the sale or resale, at retail or wholesale, or
distribution of crude oil, gasoline, petroleum distillates, or biofuel in
violation of section 203 of this title.</text>
</subsection><subsection id="IDE8D7670E42A1482884826382773F47DB"><enum>(b)</enum><header>Notice</header><text>The
State shall serve written notice to the Commission of any civil action under
subsection (a) prior to initiating the action. The notice shall include a copy
of the complaint to be filed to initiate the civil action, except that if it is
not feasible for the State to provide such prior notice, the State shall
provide such notice immediately upon instituting the civil action.</text>
</subsection><subsection id="IDB8BA938A1E1648A3BAA3CED35EBF3D59"><enum>(c)</enum><header>Authority To
intervene</header><text>Upon receiving the notice required by subsection (b),
the Commission may intervene in the civil action and, upon intervening—</text>
<paragraph id="ID9BA7D324A60F401D877C07BD4CB63220"><enum>(1)</enum><text>may be heard on
all matters arising in such civil action; and</text>
</paragraph><paragraph id="IDF9406EAE46B6428B8EE12B90C2CE98CB"><enum>(2)</enum><text>may file
petitions for appeal of a decision in such civil action.</text>
</paragraph></subsection><subsection id="IDCCDC5E95F81F4ADC9CDD638473C77478"><enum>(d)</enum><header>Construction</header><text>For
purposes of bringing any civil action under subsection (a), nothing in this
section shall prevent the attorney general of a State from exercising the
powers conferred on the Attorney General by the laws of such State to conduct
investigations or to administer oaths or affirmations or to compel the
attendance of witnesses or the production of documentary and other
evidence.</text>
</subsection><subsection id="IDC7B0F3800FDF4ED1AFAE5C33B2C204A9"><enum>(e)</enum><header>Venue; service
of process</header><text>In a civil action brought under subsection (a)—</text>
<paragraph id="IDC144BA5A8EA04E2CA195CDF3E226BBC9"><enum>(1)</enum><text>the venue shall
be a judicial district in which—</text>
<subparagraph id="ID224C7AEF0543409E8EB49E0008AF7A93"><enum>(A)</enum><text>the defendant
operates;</text>
</subparagraph><subparagraph id="ID54135346765F4A4E838F680F183285CF"><enum>(B)</enum><text>the defendant was
authorized to do business; or</text>
</subparagraph><subparagraph id="ID4C533A9AFF9C4B078F56403AF3F74DC1"><enum>(C)</enum><text>where the
defendant in the civil action is found;</text>
</subparagraph></paragraph><paragraph id="ID317C73A115594BE9B36A55D68CB19D25"><enum>(2)</enum><text>process may be
served without regard to the territorial limits of the district or of the State
in which the civil action is instituted; and</text>
</paragraph><paragraph id="ID2DD31847E9DA449EBAFFB84EE1FEFA29"><enum>(3)</enum><text>a person who
participated with the defendant in an alleged violation that is being litigated
in the civil action may be joined in the civil action without regard to the
residence of the person.</text>
</paragraph></subsection><subsection id="ID92C902C93E634855B8A82D4D37557DFD"><enum>(f)</enum><header>Limitation on
state action while federal action is pending</header><text>If the Commission
has instituted a civil action or an administrative action for violation of this
title, a State attorney general, or official or agency of a State, may not
bring an action under this section during the pendency of that action against
any defendant named in the complaint of the Commission or the other agency for
any violation of this title alleged in the Commission's civil or administrative
action.</text>
</subsection><subsection id="ID38E14BF475FD4EACAA998D04736ED591"><enum>(g)</enum><header>No
preemption</header><text>Nothing contained in this section shall prohibit an
authorized State official from proceeding in State court to enforce a civil or
criminal statute of that State.</text>
</subsection></section><section id="ID2FAB5848F0B94CDF83249729007FFABE"><enum>207.</enum><header>
Penalties</header>
<subsection id="IDE5CBE605E9AE41289C1674288C3AB6D3"><enum>(a)</enum><header>Civil
penalty</header>
<paragraph id="ID4D762A9548BE4C3480C36EC8EEF51FD6"><enum>(1)</enum><header>In
general</header><text>In addition to any penalty applicable under the Federal
Trade Commission Act, any supplier—</text>
<subparagraph id="IDD39EE09DD8564400ABF31C0DAC031382"><enum>(A)</enum><text>that violates
section 203 of this title is punishable by a civil penalty of not more than
$1,000,000; and</text>
</subparagraph><subparagraph id="IDFD5220C9F28F49FCB87ED324B5F764A0"><enum>(B)</enum><text>that violates
section 203 of this title is punishable by a civil penalty of—</text>
<clause id="ID8BCFD49E1A2B41C4886F3DC80153233B"><enum>(i)</enum><text>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</text>
</clause><clause id="IDD091AC2C281345A5808DCCB84E6B09F9"><enum>(ii)</enum><text>not more than
$5,000,000 in the case of any other supplier.</text>
</clause></subparagraph></paragraph><paragraph id="IDDA0DD8E6741C4A36BAD3C27152D77E87"><enum>(2)</enum><header>Method</header><text>The
penalties provided by paragraph (1) shall be obtained in the same manner as
civil penalties imposed under section 5 of the Federal Trade Commission Act (15
U.S.C. 45).</text>
</paragraph><paragraph id="ID0452BEF19FE846A295D6E3121040B651"><enum>(3)</enum><header>Multiple
offenses; mitigating factors</header><text>In assessing the penalty provided by
subsection (a)—</text>
<subparagraph id="ID02EA565D84E64A44B7BC3E00DE32BCDF"><enum>(A)</enum><text>each day of a
continuing violation shall be considered a separate violation; and</text>
</subparagraph><subparagraph id="ID64D768D3D4D04404BB285EFB0036AFE3"><enum>(B)</enum><text>the court shall
take into consideration, among other factors, the seriousness of the violation
and the efforts of the person committing the violation to remedy the harm
caused by the violation in a timely manner.</text>
</subparagraph></paragraph></subsection><subsection id="ID8078EBCB8C274C42BB32B63A0F84973E"><enum>(b)</enum><header>Criminal
penalty</header><text>Violation of section 203 of this title is punishable by a
fine of not more than $5,000,000, imprisonment for not more than 5 years, or
both.</text>
</subsection></section><section id="ID14FA2F30B72E426F8B409DA1BBCD8E4A"><enum>208.</enum><header> Effect on
other laws</header>
<subsection id="IDFAE85C40BC604E7FA34F20EEFBB559AD"><enum>(a)</enum><header>Other authority
of the commission</header><text>Nothing in this title shall be construed to
limit or affect in any way the Commission's authority to bring enforcement
actions or take any other measure under the Federal Trade Commission Act (15
U.S.C. 41 et seq.) or any other provision of law.</text>
</subsection><subsection id="ID2F0FA409DDA44A6F9BA63BEB4F2555B6"><enum>(b)</enum><header>State
law</header><text>Nothing in this title preempts any State law.</text>
</subsection></section><enum>III</enum><header>Strategic
Petroleum Reserve</header>
<section id="idD46564D6597B444FA9033FB94CBD6491" section-type="subsequent-section"><enum>301.</enum><header>Suspension of
petroleum acquisition for Strategic Petroleum Reserve</header>
<subsection id="IDf6b5315e5380494d9ef666162ce44de3"><enum>(a)</enum><header>In
general</header><text>Except as provided in subsection (b) and notwithstanding
any other provision of law, during the period beginning on the date of
enactment of this Act and ending on December 31, 2008—</text>
<paragraph id="ID599558c55e0d45deb0e7322e674bdd37"><enum>(1)</enum><text>the Secretary of
the Interior shall suspend acquisition of petroleum for the Strategic Petroleum
Reserve through the royalty-in-kind program; and</text>
</paragraph><paragraph id="ID8b79a985d5d747a3b822aed79f8fc852"><enum>(2)</enum><text>the Secretary of
Energy shall suspend acquisition of petroleum for the Strategic Petroleum
Reserve through any other acquisition method.</text>
</paragraph></subsection><subsection id="ID2457cc0f680d43b58bf137977502f5ce"><enum>(b)</enum><header>Resumption</header><text>Not
earlier than 30 days after the date on which the President notifies Congress
that the President has determined that the weighted average price of petroleum
in the United States for the most recent 90-day period is $75 or less per
barrel—</text>
<paragraph id="ID7aa2a1acdcc340cc8b538830da3fc4d2"><enum>(1)</enum><text>the Secretary of
the Interior may resume acquisition of petroleum for the Strategic Petroleum
Reserve through the royalty-in-kind program; and</text>
</paragraph><paragraph id="IDe38d846e498b45579facce32417508f3"><enum>(2)</enum><text>the Secretary of
Energy may resume acquisition of petroleum for the Strategic Petroleum Reserve
through any other acquisition method.</text>
</paragraph></subsection><subsection id="id4CFE05FBA3964ABBA2B5CB7691B14D6B"><enum>(c)</enum><header>Existing
contracts</header><text>In the case of any oil scheduled to be delivered to the
Strategic Petroleum Reserve pursuant to a contract entered into by the
Secretary of Energy prior to, and in effect on, the date of enactment of this
Act, the Secretary shall, to the maximum extent practicable, negotiate a
deferral of the delivery of the oil for a period of not less than 1 year, in
accordance with procedures of the Department of Energy in effect on the date of
enactment of this Act for deferrals of oil.</text>
</subsection></section><enum>IV</enum><header>No
Oil Producing and Exporting Cartels</header>
<section id="idD0F818CBD74540F4BAEB868CA84E7F85"><enum>401.</enum><header>No Oil
Producing and Exporting Cartels Act of 2008</header>
<subsection id="idCC0FCCC80A39481A9C90ED60F6336DFF"><enum>(a)</enum><header>Short
title</header><text>This section may be cited as the <quote><short-title>No Oil Producing and Exporting Cartels Act of
2008</short-title></quote> or <quote><short-title>NOPEC</short-title></quote>.</text>
</subsection><subsection id="id3D44515C900E4A0C8E71CD88D2481298"><enum>(b)</enum><header>Sherman
Act</header><text>The Sherman Act (15 U.S.C. 1 et seq.) is amended by adding
after section 7 the following:</text>
<quoted-block display-inline="no-display-inline" id="idC3CDF274292F4128B71B131DABBE27A3" style="OLC">
<section id="id533A914B493C4378B20AA0C694CA3DB9"><enum>7A.</enum><header>Oil producing
cartels</header>
<subsection id="idA4CBC4C79E3E4901842146AE53D7EA23"><enum>(a)</enum><header>In
general</header><text>It shall be illegal and a violation of this Act for any
foreign state, or any instrumentality or agent of any foreign state, to act
collectively or in combination with any other foreign state, any
instrumentality or agent of any other foreign state, or any other person,
whether by cartel or any other association or form of cooperation or joint
action—</text>
<paragraph id="idB33E2A1288074186981EF1344FCFF52F"><enum>(1)</enum><text>to limit the
production or distribution of oil, natural gas, or any other petroleum
product;</text>
</paragraph><paragraph id="id52A7A44D3FEA4952AA3FA8F43D70A1B4"><enum>(2)</enum><text>to set or
maintain the price of oil, natural gas, or any petroleum product; or</text>
</paragraph><paragraph id="id316697A2615B456FA506280E15D1B2A9"><enum>(3)</enum><text>to otherwise take
any action in restraint of trade for oil, natural gas, or any petroleum
product;</text>
</paragraph><continuation-text continuation-text-level="subsection">when such
action, combination, or collective action has a direct, substantial, and
reasonably foreseeable effect on the market, supply, price, or distribution of
oil, natural gas, or other petroleum product in the United States.</continuation-text></subsection><subsection id="id41A7C4C65E034F78AE68EF961A2738B4"><enum>(b)</enum><header>Sovereign
immunity</header><text>A foreign state engaged in conduct in violation of
subsection (a) shall not be immune under the doctrine of sovereign immunity
from the jurisdiction or judgments of the courts of the United States in any
action brought to enforce this section.</text>
</subsection><subsection id="id057213F95AFC4B0A8D29E922345A0512"><enum>(c)</enum><header>Inapplicability
of act of state doctrine</header><text>No court of the United States shall
decline, based on the act of state doctrine, to make a determination on the
merits in an action brought under this section.</text>
</subsection><subsection id="id899DD8EBA70F4577A236CCA5AD361009"><enum>(d)</enum><header>Enforcement</header><text>The
Attorney General of the United States may bring an action to enforce this
section in any district court of the United States as provided under the
antitrust
laws.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2F14D30C63354ED2B786F41DA8163DE7"><enum>(c)</enum><header>Sovereign
immunity</header><text>Section 1605(a) of title 28, United States Code, is
amended—</text>
<paragraph id="id02EF36F6ACF64B5CADA2CFCCCA0CDD27"><enum>(1)</enum><text>in paragraph (6),
by striking <quote>or</quote> after the semicolon;</text>
</paragraph><paragraph id="idD98A5B02D6974E4797E39E59008F23E4"><enum>(2)</enum><text>in paragraph (7),
by striking the period and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="id0F8BC114077445BB868197F378198928"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id497F885DADFB4D1184DCE3CFAA11BC8D" style="OLC">
<paragraph id="idFB6BB86D23AE41CBA6C7D0C61E8F7E84"><enum>(8)</enum><text>in which the
action is brought under section 7A of the Sherman
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Market
speculation</header>
<section id="idCD347AF7F4DD44F28745486DDA68639C"><enum>501.</enum><header>Speculative
limits and transparency for off-shore oil trading</header><text display-inline="no-display-inline">Section 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7370DE6C3402422488062D047D231B63" style="OLC">
<subsection id="id07CD5208AF134260BAAFD83BBB5C5282"><enum>(e)</enum><header>Foreign boards
of trade</header>
<paragraph id="IDa0b4eac7a77f489cb94b78e9c3f601ec"><enum>(1)</enum><header>In
general</header><text>In the case of any foreign board of trade for which the
Commission has granted or is considering an application to grant a board of
trade located outside of the United States relief from the requirement of
subsection (a) to become a designated contract market, derivatives transaction
execution facility, or other registered entity, with respect to an energy
commodity that is physically delivered in the United States, prior to
continuing to or initially granting the relief, the Commission shall determine
that the foreign board of trade—</text>
<subparagraph id="id78B609627E0A4E369FB5727CAC0DCF8E"><enum>(A)</enum><text>applies
comparable principles or requirements regarding the daily publication of
trading information and position limits or accountability levels for
speculators as apply to a designated contract market, derivatives transaction
execution facility, or other registered entity trading energy commodities
physically delivered in the United States; and</text>
</subparagraph><subparagraph id="IDf8323920e8e14228a5d1255d0cbf722a"><enum>(B)</enum><text>provides such
information to the Commission regarding the extent of speculative and
nonspeculative trading in the energy commodity that is comparable to the
information the Commission determines necessary to publish a Commitment of
Traders report for a designated contract market, derivatives transaction
execution facility, or other registered entity trading energy commodities
physically delivered in the United States.</text>
</subparagraph></paragraph><paragraph id="ID878d8e9800234e9e9946b4353c6d7093"><enum>(2)</enum><header>Existing
foreign boards of trade</header><text>During the period beginning 1 year after
the date of enactment of this subsection and ending 18 months after the date of
enactment of this subsection, the Commission shall determine whether to
continue to grant relief in accordance with paragraph (1) to any foreign board
of trade for which the Commission granted relief prior to the date of enactment
of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB6B51234D0F642CC94687DFEFB3731EE" section-type="subsequent-section"><enum>502.</enum><header>Margin level for
crude oil</header>
<subsection id="idAA13A250B136430A89C1F2FE5DA1A559"><enum>(a)</enum><header>In
general</header><text>Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C.
2(a)(1)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id58B1E20D9DC14C90B74385E01BB0D4F4" style="OLC">
<subparagraph id="id9794AF6928634E2FB99E73C360606562"><enum>(G)</enum><header>Margin level
for crude oil</header><text>Not later than 90 days after the date of enactment
of this subparagraph, the Commission shall promulgate regulations to set a
substantial increase in margin levels for crude oil traded on any trading
facility or as part of any agreement, contract, or transaction covered by this
Act in order to reduce excessive speculation and protect
consumers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id4749DD36EBBA4534A025C3D32547DE17"><enum>(b)</enum><header>Studies</header>
<paragraph id="id5EACB123C2CE4ECB99C3C11BC7EC4266"><enum>(1)</enum><header>Study relating
to effect of certain regulations</header><text>Not later than 1 year after the
date of enactment of this Act, the Commodity Futures Trading Commission shall
submit to the appropriate committees of Congress a report describing the effect
of the amendment made by subsection (a) on any trading facilities and
agreements, contracts, and transactions covered by the Commodity Exchange Act
(7 U.S.C. 1 et seq.).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC56ED143C9814069A5F9A7069B9A7C3F"><enum>(2)</enum><header>Study relating
to effects of changes in margin levels</header><text>Not later than 180 days
after the date of enactment of this Act, the Comptroller General of the United
States shall submit to the appropriate committees of Congress a report
describing the effect (including any effect relating to trade volume or
volatility) of any change of a margin level that occurred during the 10-year
period ending on the date of enactment of this Act.</text>
</paragraph></subsection></section>
May 21, 2008
Read the second time and placed on the
calendar