[Congressional Record Volume 151, Number 147 (Tuesday, November 8, 2005)]
[Senate]
[Pages S12528-S12530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. STABENOW:
  S. 1973. A bill to provide an immediate Federal income tax rebate to 
help taxpayers with higher fuel costs, to express the sense of the 
Senate regarding full funding of LIHEAP, and to provide consumer 
protections against fuel price gouging, and for other purposes; to the 
Committee on Finance.
  Ms. STABENOW. Mr. President, I rise today to introduce the Energy Tax 
Rebate Act of 2005 and I ask unanimous consent that the text of the 
bill be printed in the Record.
  Michigan families and families across America are being delivered a 
one-two punch when it comes to energy prices. First, they continue to 
be hit hard by high gasoline prices. Now they are facing home heating 
costs this winter that are expected to rise dramatically compared to 
last year.
  We can do better than this for our families. So today I am 
introducing a bill that will provide families with an immediate $500 
tax rebate to help them pay for rising energy costs. My legislation 
also includes important consumer protections to make sure Americans are 
not the victims of unfair market practices and consumer price gouging. 
Finally, my bill includes a Sense of the Senate that the Low-Income 
Home Energy Assistance Program, known as LIHEAP, should be fully funded 
to its authorized level of $5.1 billion. LIHEAP is a successful program 
that makes sure our most vulnerable families, those living on low 
incomes or fixed-incomes, are able to heat their homes during the cold 
winter months.
  Filling our cars with gasoline to take our children to school and 
heating our homes in the winter are not luxuries. They are necessities. 
Energy is a necessity. Together we can do better and together we will 
do better.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1973

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Energy Tax Rebate Act of 
     2005''.

                       TITLE I--ENERGY TAX REBATE

     SEC. 101. ENERGY TAX REBATE.

       (a) In General.--Subchapter B of chapter 65 of the Internal 
     Revenue Code of 1986 (relating to rules of special 
     application in the case of abatements, credits, and refunds) 
     is amended by adding at the end the following new section:

     ``SEC. 6430. ENERGY TAX REBATE.

       ``(a) General Rule.--Except as otherwise provided in this 
     section, each individual shall be treated as having made a 
     payment against the tax imposed by chapter 1 for the taxable 
     year beginning in 2005 in an amount equal to the lesser of--
       ``(1) the amount of the taxpayer's liability for tax for 
     such taxpayer's preceding taxable year, or
       ``(2) $500.
       ``(b) Liability for Tax.--For purposes of this section, the 
     liability for tax for any taxable year shall be the excess 
     (if any) of--
       ``(1) the sum of--
       ``(A) the taxpayer's regular tax liability (within the 
     meaning of section 26(b)) for the taxable year,
       ``(B) the tax imposed by section 55(a) with respect to such 
     taxpayer for the taxable year, and
       ``(C) the taxpayer's social security taxes (within the 
     meaning of section 24(d)(2)) for the taxable year, over
       ``(2) the sum of the credits allowable under part IV of 
     subchapter A of chapter 1 (other than the credits allowable 
     under subpart C thereof, relating to refundable credits) for 
     the taxable year.
       ``(c) Taxable Income Limitation.--
       ``(1) In general.--If the taxable income of the taxpayer 
     for the preceding taxable year exceeds the maximum taxable 
     income in the table under subsection (a), (b), (c), or (d) of 
     section 1, whichever is applicable, to which the 25 percent 
     rate applies, the dollar amount otherwise determined under 
     subsection (a) for such taxpayer shall be reduced (but not 
     below zero) by the amount of the excess.
       ``(2) Change in return status.--In the case of married 
     individuals filing a joint return for the taxable year who 
     did not file such a joint return for the preceding taxable 
     year, paragraph (1) shall be applied by reference to the 
     taxable income of both such individuals for the preceding 
     taxable year.
       ``(d) Date Payment Deemed Made.--
       ``(1) In general.--The payment provided by this section 
     shall be deemed made on the date of the enactment of the 
     Energy Tax Rebate Act of 2005.
       ``(2) Remittance of payment.--The Secretary shall remit to 
     each taxpayer the payment described in paragraph (1) not 
     later than the date which is 30 days after the date specified 
     in paragraph (1).
       ``(e) Certain Persons Not Eligible.--This section shall not 
     apply to--
       ``(1) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for a taxable 
     year beginning in the calendar year in which such 
     individual's taxable year begins,
       ``(2) any estate or trust, or
       ``(3) any nonresident alien individual.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting before the period 
     ``, or enacted by the Energy Tax Rebate Act of 2005''.
       (c) Clerical Amendment.--The table of sections for 
     subchapter B of chapter 65 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Sec. 6430. Energy tax rebate.''.

       (d) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

[[Page S12529]]

              TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

     SEC. 201. SENSE OF THE SENATE REGARDING FULL FUNDING FOR THE 
                   LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

       It is the sense of the Senate that Congress should 
     appropriate $5,100,000,000 for fiscal year 2006 and each 
     subsequent fiscal year for the Low-Income Home Energy 
     Assistance Program, under section 2602(b) of the Low-Income 
     Home Energy Assistance Act of 1981.

                    TITLE III--CONSUMER PROTECTIONS

     SEC. 301. UNFAIR OR DECEPTIVE ACTS OR PRACTICE IN COMMERCE 
                   RELATED TO PRICING OF PETROLEUM PRODUCTS.

       (a) Sales to Consumers at Unconscionable Price.--
       (1) In general.--It is unlawful for any person to sell 
     crude oil, gasoline, or petroleum distillates at a price 
     that--
       (A) is unconscionably excessive; or
       (B) indicates the seller is taking unfair advantage of 
     circumstances to increase prices unreasonably.
       (2) Factors considered.--In determining whether a violation 
     of paragraph (1) has occurred, there shall be taken into 
     account, among other factors, whether--
       (A) the amount charge represents a gross disparity between 
     the price of the crude oil, gasoline, or petroleum distillate 
     sold and the price at which it was offered for sale in the 
     usual course of the seller's business immediately prior to 
     the energy emergency; or
       (B) the amount charged grossly exceeds the price at which 
     the same or similar crude oil, gasoline, or petroleum 
     distillate was readily obtainable by other purchasers in the 
     area to which the declaration applies.
       (3) Mitigating factors.--In determining whether a violation 
     of paragraph (1) 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 crude 
     oil, gasoline, or petroleum distillate was sold reasonably 
     reflects additional costs, not within the control fo the 
     seller, that were paid or incurred by the seller.
       (b) Prohibition Against Geographic Price-Setting and 
     Territorial Restrictions.--
       (1) In general.--Except as provided in paragraph (2), it is 
     unlawful for any person to--
       (A) set different prices for gasoline or petroleum 
     distillates for different geographic locations; or
       (B) implement a territorial restriction with respect to 
     gasoline or petroleum distillates.
       (2) Exceptions.--A person may set different prices for 
     gasoline or petroleum distillates for different geographic 
     locations or implement territorial restrictions with respect 
     to gasoline or petroleum distillates only if the price 
     differences or restrictions are sufficiently justified by--
       (A) differences in the cost of retail space where the 
     gasoline or petroleum distillate is sold;
       (B) differences in the cost of transportation of gasoline 
     or petroleum distillates from the refinery to the retail 
     location;
       (C) differences in the cost of storage of gasoline or 
     petroleum distillates at the retail location; or
       (D) differences in the formulation of the gasoline or 
     petroleum distillates sold.
       (c) False Pricing Information.--It is unlawful for any 
     person to report information related to the wholesale price 
     of crude oil, gasoline, or petroleum distillates to the 
     Federal Trade Commission if--
       (1) that person knew, or reasonably should have known, the 
     information to be false or misleading;
       (2) the information was required by law to be reported; and
       (3) the person intended the false or misleading data to 
     affect data compiled by that department or agency for 
     statistical or analytical purpose with respect to the market 
     for crude oil, gasoline, or petroleum distillates.

     SEC. 302. ENFORCEMENT UNDER FEDERAL TRADE COMMISSION ACT.

       (a) Enforcement by Commission.--This title shall be 
     enforced by the Federal Trade Commission. In enforcing 
     section 301(a) 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, and petroleum distillates 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.
       (b) Violation Is Unfair or Deceptive Act or Practice.--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)).

     SEC. 303. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

       (a) In General.--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 301(a), or to impose the civil penalties 
     authorized by section 304 for violations of section 301(a), 
     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 by such violation.
       (b) Notice.--The State shall serve written notice to the 
     Commission of any civil action under subsection (a) prior to 
     initiating such civil action. The notice shall include a copy 
     of the complaint to be filed to initiate such 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 such civil action.
       (c) Authority to Intervene.--Upon receiving the notice 
     required by subsection (b), the Commission may intervene in 
     such civil action and upon intervening--
       (1) be heard on all matters arising in such civil action; 
     and
       (2) file petitions for appeal of a decision in such civil 
     action.
       (d) Construction.--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.
       (e) Venue; Service of Process.--In a civil action brought 
     under subsection (a)--
       (1) the venue shall be a judicial district in which--
       (A) the defendant operates;
       (B) the defendant was authorized to do business; or
       (C) where the defendant in the civil action is found;
       (2) 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
       (3) 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.
       (f) Limitation on State Action While Federal Action Is 
     Pending.--If the Commission has instituted a civil action or 
     an administrative action for violation of this title, no 
     State attorney general, or official or agency of a State, may 
     bring an action under this subsection during the pendency of 
     that action against any defendant named in the complain of 
     the Commission or the other agency for any violation of this 
     title alleged in the complaint.
       (g) Enforcement of State Law.--Nothing contained in this 
     section shall prohibit an authorized State official from 
     proceeding in state court to enforce a civil or criminal 
     statute of such State.

     SEC. 304. PENALTIES.

       (a) Civil Penalty.--
       (1) In general.--In addition to any penalty applicable 
     under the Federal Trade Commission Act--
       (A) any person who violates section 301(c) of this title is 
     punishable by a civil penalty of not more than $1,000,000; 
     and
       (B) any person who violates section 301(a) or 301(b) of 
     this title is punishable by a civil penalty of not more than 
     $3,000,000.
       (2) Method of assessment.--The penalties provided by 
     paragraph (1) shall be assessed in the same manner as civil 
     penalties imposed 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) each day of a continuing violation shall be considered 
     a separate violation; and
       (B) the Commission shall take into consideration 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.
       (b) Criminal Penalty.--Violation of section 301(a) of this 
     title is punishable by a fine of not more than $1,000,000, 
     imprisonment for not more than 5 years, or both.

     SEC. 305. EFFECT ON OTHER LAWS.

       (a) Other Authority of Commission.--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.
       (b) State Law.--Nothing in this title preempts any State 
     law.

     SEC. 306. MARKET TRANSPARENCY FOR CRUDE OIL, GASOLINE, AND 
                   PETROLEUM DISTILLATES.

       (a) In General.--The Federal Trade Commission shall 
     facilitate price transparency in markets for the sale of 
     crude oil and essential petroleum products at wholesale, 
     having due regard for the public interest, the integrity of 
     those markets, fair competition, and the protection of 
     consumers.
       (b) Marketplace Transparency.--
       (1) Dissemination of information.--In carrying out this 
     section, the Commission shall provide by rule for the 
     dissemination, on a timely basis, of information about the 
     availability and prices of wholesale crude oil, gasoline, and 
     petroleum distillates to the Commission, States, wholesale 
     buyers and sellers, and the public.
       (2) Protection of public from anticompetitive activity.--In 
     determining the information to be made available under this 
     section and time to make the information available, the 
     Commission shall seek to ensure that consumers and 
     competitive markets are protected from the adverse effects of 
     potential collusion or other anticompetitive behaviors that 
     can be facilitated by untimely public disclosure of 
     transaction-specific information.

[[Page S12530]]

       (3) Protection of market mechanisms.--The Commission shall 
     withhold from public disclosure under this section any 
     information the Commission determines would, if disclosed, be 
     detrimental to the operation of an effective market or 
     jeopardize security.
       (c) Information Sources.--
       (1) In general.--In carrying out subsection (b), the 
     Commission may--
       (A) obtain information from any market participant; and
       (B) rely on entities other than the Commission to receive 
     and make public the information, subject to the disclosure 
     rules in subsection (b)(3).
       (2) Published data.--In carrying out this section, the 
     Commission shall--
       (A) consider the degree of price transparency provided by 
     existing price publishers and providers of trade processing 
     services; and
       (B) rely on such publishers and services to the maximum 
     extent practicable.
       (3) Electronic information systems.--
       (A) In general.--The Commission may establish an electronic 
     information system if the Commission determines that existing 
     price publications are not adequately providing price 
     discovery or market transparency.
       (B) Electronic information filing requirements.--Nothing in 
     this section affects any electronic information filing 
     requirements in effect under this title as of the date of 
     enactment of this Act.
       (4) De minimus exception.--The Commission may not require 
     entities who have a de minimus market presence to comply with 
     the reporting requirements of this section.
       (d) Cooperation With Other Federal Agencies.--
       (1) Memorandum of understanding.--Not later 180 days after 
     the date of enactment of this Act, the Commission shall 
     conclude a memorandum of understanding with the Commodity 
     Futures Trading Commission and other appropriate agencies (if 
     applicable) relating to information sharing, which shall 
     include provisions--
       (A) ensuring that information requests to markets within 
     the respective jurisdiction of each agency are properly 
     coordinated to minimize duplicative information requests; and
       (B) regarding the treatment of proprietary trading 
     information.
       (2) CFTC jurisdiction.--Nothing in this section limits or 
     affects the exclusive jurisdiction of the Commodity Futures 
     Trading Commission under the Commodity Exchange Act (7 U.S.C. 
     1 et seq.).
       (e) Rulemaking.--Not later than 180 days after the date of 
     enactment of this Act, the Commission shall initiate a 
     rulemaking proceeding to establish such rules as the 
     Commission determines to be necessary and appropriate to 
     carry out this section.
                                 ______