[Congressional Record Volume 149, Number 47 (Monday, March 24, 2003)]
[Senate]
[Page S4328]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 694. A bill to require the Federal Trade Commission to monitor and 
investigate gasoline prices under certain circumstances; to the 
Committee on Commerce, Science, and Transportation.
  Mrs. BOXER. Mr. President, gasoline prices on average in California 
are $2.15 per gallon.
  According to the U.S. Energy Information Administration, EIA, the 
cost of crude oil rose 16.4 percent from January 6 to March 3. During 
the same time period, the average retail price of gasoline rose 27.2 
percent.
  After seeing the statistics, I do not buy the argument that higher 
gasoline prices are due solely to higher crude oil prices. I am 
concerned that oil companies have been pocketing more profits as 
consumers pay record high gas prices.
  I have been advised of news reports that refiners are taking more 
plants than usual offline for ``routine maintenance.'' This is 
reminiscent of the electricity crisis when generators took their plants 
off-line for ``routine maintenance'' at a rate higher than normal. We 
now know that these generators were holding back electricity to 
artificially increase the price of electricity.
  In response to soaring gas prices across the country and especially 
in California and in response to potential manipulation, I am 
introducing legislation to shed light on the situation and hopefully 
curtail future market manipulation.
  My legislation requires the Federal Trade Commission, FTC, to 
automatically investigate the gasoline market for manipulation anytime 
average gasoline prices increase in any state by 20 percent in a period 
of 3 months or less and remain at that level for seven days or more.
  Market manipulation would include, but is not limited to, collusion 
or the creation of artificial shortages such as unnecessarily taking 
refineries off-line. In determining the trigger, the gasoline price 
used would be the Energy Information Agency's pricing of regular grade 
gasoline. A report on the FTC's investigation would be due to Congress 
14 days after the price trigger.
  Under the bill, the FTC would be required within two weeks of issuing 
the report to hold a public meeting to discuss the findings.
  If the findings indicate that there is market manipulation, then the 
FTC would work with the state's Attorney General to determine the 
penalties.
  If the findings indicate that there is no market manipulation, then 
the U.S. Department of Energy must officially decide, within two weeks, 
if the Strategic Petroleum Reserve should be used in order to ease 
prices and stabilize supply.
  We need to deter market manipulation. Otherwise we risk serious price 
gouging with no accountability to consumers. My legislation offers a 
reasonable standard for an investigation and a reasonable time frame in 
which to complete that investigation. I believe the threat of these 
investigations and the public light that would be shed on the system 
will be positive for the consumer.
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