[Congressional Record Volume 149, Number 82 (Thursday, June 5, 2003)]
[Senate]
[Pages S7482-S7483]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself and Ms. Stabenow):
  S. 1192. A bill to establish a Consumer and Small Business Energy 
Commission to assess and provide recommendations regarding recent 
energy price spikes from the perspective of consumers and small 
businesses; to the Committee on Energy and Natural Resources.
  Mr. DURBIN. Mr. President, today I am introducing the Consumer and 
Small Business Energy Commission Act. I am pleased to have the support 
of the Senator from Michigan, Senator Stabenow, in introducing this 
legislation. This legislation will allow us to better understand the 
causes of energy price spikes from the consumer and small business 
perspectives, and better address this pressing issue.
  The Consumer and Small Business Energy Commission Act would establish 
a Consumer and Small Business Energy Commission. The members would be 
appointed on a bipartisan basis by the Speaker and Minority Leader of 
the House and the Majority and Minority Leaders of the Senate, as well 
as the President. The Commission would be comprised of representatives 
of consumer groups, the energy industry, small businesses, and the 
Administration. The Commission will study the causes of energy price 
spikes and issue recommendations on how to avert price spikes in the 
future.
  Sine 1990, residential heating oil, residential natural gas, 
commercial natural gas, industrial natural gas, and gasoline have all 
had significantly fluctuating prices. Gasoline price spikes have become 
commonplace in the Midwest. Escalating home heating and cooling bills 
have crippled family budgets in the Midwest and Northeast. Farmers and 
industries dependent on natural gas for the production of fertilizer 
and other chemical products have also suffered economically. Most 
recently, natural gas prices have skyrocketed and gasoline prices have 
shown little sign of falling from the historic highs of the past few 
months.
  We need a comprehensive study of these problems. Some past studies 
have assessed the long-range supply and demand for energy product. The 
Federal Trade Commission studied gasoline price spikes in the Midwest, 
and Senator Levin has embarked on a series of hearings exploring 
gasoline pricing issues. Other studies have investigated narrow or 
specific abuses of market power in the energy industry, such as in 
California. The Consumer and Small Business Energy Commission will look 
at the entire picture, focusing on price fluctuations of all consumer 
energy products. The list of potential causes that need to be studied 
includes: insufficient inventories, supply disruptions, refinery 
capacity limits, insufficient infrastructure, possible regulation 
problems, flawed deregulation, excessive consumption, over-reliance on 
foreign supplies, insufficient investment in research and development 
of alternative sources, opportunistic behavior by energy companies, and 
abuse of market power.
  We need to give consumers and small businesses a voice. When 
consumers go to pay their grocery bills, or their tuition bills, or 
even their residential electricity bills in most states, and when small 
businesses go to pay for raw materials, prices are fairly predictable. 
But when they go to pay for their heating and cooling, natural gas, or 
gasoline, families and businesses face the frustrating reality of wild 
price swings.
  We need to bring consumers and small businesses to the table together 
with representatives of the energy industry and government. We need 
these groups to work collectively, and to consider the range of 
possible causes of energy price spikes.

  A measure very similar to this bill enjoyed strong, bipartisan 
support last year, and passed as an amendment to the Senate energy bill 
by a vote of 69-30. The minor changes to this bill include adding 
direct representation of small businesses to the Commission, expanding 
the participation of Administration representatives in the study phase, 
and establishing an Executive Committee to expedite the issuance of the 
final report, which will include recommendations.
  By enacting the Consumer and Small Business Energy Commission Act, we 
will be able to better understand the causes of energy price spikes and 
hopefully avert them in the future. I urge my colleagues to join me as 
a cosponsor of this important legislation. I ask unanimous consent that 
the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1192

       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 ``Consumer and Small Business 
     Energy Commission Act of 2003''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) there have been several sharp increases since 1990 in 
     the price of electricity, gasoline, home heating oil, natural 
     gas, and propane in the United States;
       (2) recent examples of such increases include--
       (A) unusually high gasoline prices that are at least partly 
     attributable to global politics;
       (B) electricity price spikes during the California energy 
     crisis of 2001; and
       (C) the Midwest gasoline price spikes in spring 2001;
       (3) shifts in energy regulation, including the allowance of 
     greater flexibility in competition and trading, have affected 
     price stability and consumers in ways that are not fully 
     understood;
       (4) price spikes undermine the ability of low-income 
     families, the elderly, and small businesses (including 
     farmers and other agricultural producers) to afford essential 
     energy services and products;
       (5) energy price spikes can exacerbate a weak economy by 
     creating uncertainties that discourage investment, growth, 
     and other activities that contribute to a strong economy;
       (6) the Department of Energy has determined that the 
     economy would be likely to perform better with stable or 
     predictable energy prices;
       (7) price spikes can be caused by many factors, including 
     insufficient inventories, supply disruptions, refinery 
     capacity limits, insufficient infrastructure, over-regulation 
     or under-regulation, flawed deregulation, excessive 
     consumption, over-reliance on foreign supplies, insufficient 
     research and development of alternative energy sources, 
     opportunistic behavior by energy companies, and abuses of 
     market power;
       (8) consumers and small businesses have few options other 
     than to pay higher energy costs when prices spike, resulting 
     in reduced investment and slower economic growth and job 
     creation;
       (9) the effect of price spikes, and possible responses to 
     price spikes, on consumers and small businesses should be 
     examined; and
       (10) studies have examined price spikes of specific energy 
     products in specific contexts or for specific reasons, but no 
     study has examined price spikes comprehensively with a focus 
     on the impacts on consumers and small businesses.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Commission.--The term ``Commission'' means the Consumer 
     and Small Business Energy Commission established by section 
     4(a).
       (2) Consumer energy product.--The term ``consumer energy 
     product'' means--
       (A) electricity;
       (B) gasoline;
       (C) home heating oil;
       (D) natural gas; and
       (E) propane.
       (3) Consumer group focusing on energy issues.--The term 
     ``consumer group focusing on energy issues'' means--
       (A) an organization that is a member of the National 
     Association of State Utility Consumer Advocates;
       (B) a nongovernmental organization representing the 
     interests of residential energy consumers; and
       (C) a nongovernmental organization that--
       (i) receives not more than \1/4\ of its funding from energy 
     industries; and
       (ii) represent the interests of energy consumers.
       (4) Energy consumer.--The term ``energy consumer'' means an 
     individual or small business that purchases 1 or more 
     consumer energy products.
       (5) Energy industry.--The term ``energy industry'' means 
     for-profit or not-for-profit entities involved in the 
     generation, selling, or buying of any energy-producing fuel 
     involved in the production or use of consumer energy 
     products.
       (6) Executive committee.--The term ``Executive Committee'' 
     means the executive committee of the Commission.
       (7) Small business.--The term ``small business'' has the 
     meaning given the term

[[Page S7483]]

     ``small business concern'' in section 3(a) of the Small 
     Business Act (15 U.S.C. 632(a)).

     SEC. 4. CONSUMER ENERGY COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``Consumer and Small Business Energy 
     Commission''.
       (b) Membership.--
       (1) In general.--The Commission shall be comprised of 20 
     members.
       (2) Appointments by the senate and house of 
     representatives.--The majority leader and minority leader of 
     the Senate and the Speaker and minority leader of the House 
     of Representatives shall each appoint 4 members, of whom--
       (A) 2 shall represent consumer groups focusing on energy 
     issues;
       (B) 1 shall represent small businesses; and
       (C) 1 shall represent the energy industry.
       (3) Appointments by the president.--The President shall 
     appoint 1 member from each of--
       (A) the Energy Information Administration of the Department 
     of Energy;
       (B) the Federal Energy Regulatory Commission;
       (C) the Federal Trade Commission; and
       (D) the Commodities Future Trading Commission.
       (4) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than 30 days after the 
     date of enactment of this Act.
       (c) Term.--A member shall be appointed for the life of the 
     Commission.
       (d) Initial Meeting.--The Commission shall hold the initial 
     meeting of the Commission not later than the earlier of--
       (1) the date that is 30 days after the date on which all 
     members of the Commission have been appointed; or
       (2) the date that is 90 days after the date of enactment of 
     this Act, regardless of whether all members have been 
     appointed.
       (e) Chairperson and Vice Chairperson.--The Commission shall 
     select a Chairperson and Vice Chairperson from among the 
     members of the Commission, excluding the members appointed 
     under subparagraphs (B), (C), and (D) of subsection (b)(3).
       (f) Executive Committee.--The Commission shall have an 
     executive committee comprised of all members of the 
     Commission except the members appointed under subparagraphs 
     (B), (C), and (D) of subsection (b)(3).
       (g) Information and Administrative Expenses.--The Federal 
     agencies specified in subsection (b)(3) shall provide the 
     Commission such information and pay such administrative 
     expenses as the Commission requires to carry out this 
     section, consistent with the requirements and guidelines of 
     the Federal Advisory Commission Act (5 U.S.C. App.).
       (h) Duties.--
       (1) Study.--
       (A) In general.--The Commission shall conduct a nationwide 
     study of significant price spikes in major United States 
     consumer energy products since 1990.
       (B) Matters to be studied by the commission.--In conducting 
     the study, the Commission shall--
       (i) focus on the causes of the price spikes, including 
     insufficient inventories, supply disruptions, refinery 
     capacity limits, insufficient infrastructure, any over-
     regulation or under-regulation, flawed deregulation, 
     excessive consumption, over-reliance on foreign supplies, 
     insufficient research and development of alternative energy 
     sources, opportunistic behavior by energy companies, and 
     abuses of market power;
       (ii) examine the effects of price spikes on consumers and 
     small businesses;
       (iii) investigate market concentration, opportunities for 
     misuse of market power, and any other relevant market 
     failures; and
       (iv) consider--

       (I) proposals for administrative actions to mitigate price 
     spikes affecting consumers and small businesses;
       (II) proposals for legislative action; and
       (III) proposals for voluntary actions by energy consumers 
     and the energy industry.

       (2) Report.--Not later than 270 days after the date of 
     enactment of this Act, the Executive Committee shall submit 
     to Congress a report that contains--
       (A) a detailed statement of the findings and conclusions of 
     the Commission; and
       (B) recommendations for legislation, administrative 
     actions, and voluntary actions by energy consumers and the 
     energy industry to protect consumers from future price spikes 
     in consumer energy products, including a recommendation on 
     whether energy consumers need an advocate on energy issues 
     within the Federal Government.
       (i) Termination.--
       (1) Definition of legislative day.--In this subsection, the 
     term ``legislative day'' means a day on which both Houses of 
     Congress are in session.
       (2) Date of termination.--The Commission shall terminate on 
     the date that is 30 legislative days after the date of 
     submission of the report under subsection (h)(2).
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