[Congressional Record Volume 154, Number 83 (Tuesday, May 20, 2008)]
[Senate]
[Pages S4488-S4495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DODD (for himself, Mr. Cochran, Mrs. Clinton, Mr. Menendez,
Mr. Inouye, Mr. Kennedy, Mr. Smith, Ms. Mikulski, Mrs. Lincoln, Mr.
Casey, Mr. Bayh, Mr. Rockefeller, and Mr. Whitehouse):
S. 3037. A bill to amend the National and Community Service Act of
1990 to improve the educational awards provided for national service,
and for other purposes; to the Committee on Health, Education, Labor,
and Pensions.
Mr. DODD. Mr. President, I rise today with Senator Cochran and others
to introduce legislation that will build on one of the best service
success stories of the last quarter century: AmeriCorps. Fifteen years
ago, as he swore in the first class of AmeriCorps members, President
Bill Clinton said, ``When it is all said and done, it comes down to
three simple questions: What is right? What is wrong? And what are we
going to do about it?''
Since that time, more than a half-million AmeriCorps members have
taken it upon themselves to try and answer those questions in
communities across this country.
They have done so by serving in a variety of settings from senior
centers and veterans' hospitals to schools and afterschool programs.
They have helped clean up our neighborhoods and rebuilt our houses.
These members have sacrificed their time and energy to meet the
fundamental needs of our nation.
Last year alone, 75,000 AmeriCorps members gave back to our
communities, serving in over 4,000 schools, faith-based and community
organizations, and nonprofits across the country. They also brought
reinforcements--recruiting another 1.7 million community volunteers to
work alongside them. Because of AmeriCorps, our communities have been
strengthened, and our democracy fortified.
Unfortunately, as the hours AmeriCorps members have contributed to
our communities have increased, the Segal AmeriCorps Education Award
created to help members pay for their college tuition has remained flat
at $4,725. Meanwhile, the average college tuition has skyrocketed. The
education award previously paid for two years of college, but currently
it does not even cover the cost of a single year. I am introducing the
AmeriCorps: Together Improving Our Nation Act, ACTION, in part, to
update the education award to keep pace with 15 years of tuition
increases.
The ACTION Act will raise the education award to $6,185 and increase
the award annually to match the average tuition at a 4-year public
university.
[[Page S4489]]
That figure, $6,185 is the average cost of tuition at a four-year
public university according to the College Board. The act will also
make the education award tax exempt to ensure that students are able to
use their entire award to advance their education.
In addition, to recognize service as a national priority, this
legislation promotes the position of Executive Director of the
Corporation for National and Community Service to Cabinet status and
reestablishes the Corporation for National and Community Service's
authority to partner with other Federal agencies. As partners of equal
status, Federal Departments will be able to coordinate their priorities
and have AmeriCorps members work to meet their needs.
For example, the Department of Education could use volunteers to help
solve the ``Dropout Crisis'' and the Environmental Protection Agency
could use volunteers to increase our energy efficiency.
As a former Peace Corps volunteer, I know that national service ought
not to simply be virtuous, but rather, a resource with which we can
carry out our most urgent national priorities, from tackling poverty to
making our communities cleaner and more vibrant. We need to recognize
service as a national priority, and with passage of the ACTION Act, we
will.
______
By Mr. FEINGOLD (for himself and Mr. Hagel):
S. 3041. A bill to establish the Foreign Intelligence and Information
Commission to assess needs and provide recommendations to improve
foreign intelligence and information collection, analysis, and
reporting and for other purposes; to the Select Committee on
Intelligence.
Mr. FEINGOLD. Mr. President, today I am introducing legislation with
the senior Senator from Nebraska, Senator Hagel, to establish an
independent commission to address long-standing, systemic problems in
the collection, reporting, and analysis of foreign intelligence as well
as diplomatic reporting and open source information. First, as the DNI
has testified, we continue to direct ``disproportionate'' resources
toward current crises, rather than toward long-term strategic issues
and emerging threats. Second, we don't have the geographic distribution
of resources needed to anticipate threats around the world. The lack of
``global reach'' has also been acknowledged by the Intelligence
Community leadership. And third, we lack a comprehensive strategic
approach to the collection of information by the entire U.S.
Government, including not only the Intelligence Community, but also
State Department and other Government officers who are based in our
embassies.
To put it simply, the Government does not have a process for asking
the following questions: What do we need to know, not only today but in
the future? Who is best suited to get that information and where do
they need to be? Is our analysis up to the task? And how do we allocate
resources, across agencies, so that these requirements are met with
adequate funding? These big strategic questions are critical to our
national security, yet they don't get asked, much less answered. These
problems extend well beyond the authorities of the DNI and the
jurisdiction of any one congressional committee. That is why we need an
independent commission to finally address them comprehensively and to
make recommendations for the executive branch and for Congress.
There are concrete reasons why this is so important. Around the
world, including in Africa, South and Southeast Asia, there are current
and potential terrorist safe havens. There is also the potential for
instability and the persistence of political, economic and social
conditions that can result in a crisis that threatens our national
security. Do we need more clandestine collectors in these parts of the
world? Do we need more embassy political officers doing more diplomatic
reporting? After all, information gleaned from conversations with
government officials, civil society and tribal and religious leaders
can be critical to understanding potential terrorist safe havens and
can often be obtained more effectively than through the IC. What about
other U.S. Government officials based overseas, such as FBI officers?
What mix of these personnel is appropriate? What does a U.S. Embassy in
one of these countries look like, from an interagency collection and
reporting perspective? Are more consulates and out-of-embassy posts
part of the solution? And how do we connect the requirements of our
embassies overseas to Washington, where administration budget requests
and congressional budgetary allocations and appropriations should
reflect a broad, multi-year interagency collection strategy?
An independent commission will be able to answer these questions. It
will be able to look at the Intelligence Community, the State
Department, and other departments and agencies to ensure that strategic
and budgetary planning is not only consistent with national
requirements, but is part of a larger, interagency process. The
commission will consider the role of the National Security Council and
the OMB in this process. It will look at the problem from top to
bottom, interviewing NSC officials in Washington and visiting country
missions overseas. This would not be a confrontational or accusatory
investigation. It is an inquiry intended to produce concrete
recommendations to fix long-standing problems. Those recommendations
will be of enormous benefit to whoever the next president is. It will
help Congress as it conducts oversight and considers the role of the
Intelligence Community, the DNI, the State Department, and other
agencies in the context of broader interagency strategies.
This legislation has been endorsed by a broad range of people,
including Zbigniew Brzezinski, Donald Gregg, Carl Ford, Larry
Wilkerson, David Kay, Gayle Smith and Rand Beers. I am pleased that the
Intelligence Committee approved the legislation earlier this month as
an amendment to the fiscal year 2009 intelligence authorization bill. I
will continue working with Senator Hagel to ensure that this important
legislation is enacted.
Mr. HAGEL. Mr. President, the Feingold-Hagel bill establishes an
independent Foreign Intelligence and Information Commission, appointed
by Congress, to review strategies for collection, analysis, and
reporting of intelligence and diplomatic information from our outposts
around the world. The Commission would have a 2-year lifespan.
We must ensure that the United States is prepared to face the
challenges of the 21st Century. Our intelligence agencies and
diplomatic outposts must provide policymakers with information that
helps anticipate threats before they loom large, and our efforts must
not be focused solely on the ``threat of the day.''
As observers and veterans of the intelligence community--including
the
9/11 Commission--have noted, the U.S. Government and intelligence
community obviously have to focus on current threats, many times at the
expense of having the ``strategic depth'' to analyze and anticipate
potential threats and surprises lurking over the horizon. The focus
mainly on current reporting has been cited within the Intelligence
Community as inhibiting its ability to forecast significant longer term
problems.
With the creation of the Director of National Intelligence, DNI, and
the National Counterterrorism Center, NCTC, Congress helped move the
Intelligence Community in the right direction, but we need strategic
intelligence not just on terrorism, but many other threats that our
intelligence agencies and policymakers must anticipate.
This bi-partisan Commission would enhance--not supplant--the Senate
Select Committee on Intelligence's oversight of intelligence.
``Strategic depth'' in collection and analysis is an issue that cuts
across the oversight responsibilities of both the Senate's Intelligence
and Foreign Relations Committees. This Commission would examine
diplomatic as well as intelligence reporting, which would help provide
an in-depth analysis of issues that are not entirely within the scope
of responsibilities of the DNI. The Commission would be able to probe
these areas in depth and would have two years to issue its final
report.
We have seen how Commission reports can be useful tools to both
Congress and the Executive branch to highlight needed reforms. For
instance, the 2001 Carlucci Commission report on ``State Department
Reform'' proved to be a tremendous resource for Secretary Colin Powell
as he developed an action program to revitalize the State Department
and make needed reforms. Secretary Powell studied the findings and
recommendations of this and other panels. He met extensively with
Carlucci and other members of various
[[Page S4490]]
commissions, and relied on their detailed insights in formulating his
reform efforts.
The Feingold-Hagel legislation's commission report would help the
next administration evaluate and improve the effectiveness of key
instruments underlying our national power. The Commission would provide
recommendations on how to improve collection strategy, analysis,
interagency information sharing, and language training.
A bipartisan group of respected intelligence and national security
experts have endorsed the Commission, including former National
Security Advisor Zbigniew Brzezinski; Donald Gregg, former Ambassador
and National Security Advisor to Vice President George H. W. Bush, and
Larry Wilkerson, former Chief of Staff to Secretary Colin Powell.
Earlier this month, in a bipartisan vote, the Senate Intelligence
Committee endorsed the Feingold-Hagel legislation setting up this
commission.
This Commission would help Congress and the Executive to better
position our intelligence agencies and diplomats to provide the
information the United States Government needs to anticipate future
strategic challenges, and I urge my colleagues to support this measure.
______
By Mrs. McCASKILL (for herself and Mr. Hatch):
S. 3043. A bill to improve Federal land management, resource
conservation, environmental protection, and use of Federal real
property, by requiring the Secretary of the Interior to develop a
multipurpose cadastre of Federal and real property and identifying
inaccurate, duplicate, and out-of-date Federal land inventories, and
for other purposes; to the Committee on Energy and Natural Resources.
Mrs. McCASKILL. Mr. President, have you ever flown over the heartland
of the United States and wondered how the Midwest and West got its
distinctive and remarkable checkerboard pattern?
The reason for that extraordinary system is a law enacted on this
date in 1785. On May 20, 1785, Congress enacted a bill that laid the
foundation for American land policy. The Land Ordinance of 1785
provided that from a point of beginning in East Liverpool, Ohio, the
new Northwest Territory was to be systematically surveyed and the lands
subdivided into settlements and townships. Of the thirty-six sections
of 640 acres in each township, the sixteenth was reserved ``for the
maintenance of public schools.'' Congress began an extraordinary
process of inventorying the lands to the west, providing for settlement
and homesteads, surveying and subdividing the lands, and providing land
for Revolutionary War soldiers, as payment in lieu of compensation to
relieve the new Republic of its war debts to those who fought for our
freedom.
But while these early Acts of Congress, beginning with the Land
Ordinance of 1785, the Northwest Ordinance of 1787, through the
Homestead Act of 1862 and the more recent Federal Land Policy and
Management Act FLPMA in 1976, all contributed to the inventorying,
surveying, preservation, disposal and settlement of lands of the West,
to this day the United States does not have a current, accurate
inventory of the lands the Federal government owns.
The fact is, the Federal Government does not know what it owns, where
it owns it, what condition it is in, what its characteristics are, or
what its designated use should be. This is the third consecutive
Congress in which Congress's watchdog agency, the Government
Accountability Office placed `Managing Federal Real Property' in the
High-Risk Series, a category describing those activities with the
highest risk of waste, fraud or abuse.
The GAO, GAO-03-122, found over 30 Federal agencies control hundreds
of thousands of real property assets worldwide, including facilities
and land. However, the portfolio is not well managed, many assets are
no longer consistent with agency mission or needs, and many assets are
in an alarming state of disrepair. Also, GAO, GAO-T-RCED-95-117, told
Congress, ``The General Services Administration, GSA, publishes
statistics on the amount of land managed by each federal agency.
However, we found this information was not current or reliable.''
To remedy the lack of a current accurate inventory of all Federal
real property, and the duplication and inefficiency of the many
property databases the government does maintain, I am today introducing
the Federal Land Asset Inventory Reform, FLAIR, Act, along with my
colleague Senator Orrin Hatch of Utah. Our bill is a companion to H.R.
5532, introduced in the House on a bipartisan basis by Representative
Kind of Wisconsin and Representative Cannon of Utah.
There is no reason for the Government to lack a current, accurate
inventory of all the land it has been entrusted to manage for the
citizens of the United States. With the technology available, it should
not happen that then-Secretary of the Interior Gale Norton would
testify before the House Interior Appropriations Subcommittee on March
2, 2005 that ``The Department currently uses 26 different financial
management systems and over 100 different property systems. Employees
must enter procurement transactions multiple times in different systems
so that the data are captured in real property inventories, financial
systems, and acquisition systems. This fractured approach is both
costly and burdensome to manage.''
It is time the U.S. Government invested in a methodology and
technology to identify and inventory its land holdings. Such a system
can help enhance the Federal land management, resource conservation,
environmental protection, and use of Federal real property. We should
not be creating multiple inventories when today's technology permits us
to do it once and use it many times. Gathering information to solve
national problems should not require an Act of Congress, particularly
when a few keystrokes on a computer will do the job.
Although the Bush administration took a step toward solving this
problem when President Bush issued Executive Order 13327 in 2004, the
resulting GSA inventory is neither GIS-based nor includes public lands.
Unfortunately, this means that more than 300 million acres are exempt
from the inventory currently maintained by GSA.
Since 1980, the National Academy of Sciences has been calling for the
development of a multipurpose cadastre, or land registry, in its
report, ``Need for a Multipurpose Cadastre.'' The report said, ``There
is a critical need for a better land-information system in the United
States to improve land-conveyance procedures, furnish a basis for
equitable taxation, and provide much- needed information for resource
management and environmental planning.'' In 2007, the Academy renewed
this effort and recommended the idea of the FLAIR Act, in its report,
``National Land Parcel Data: A Vision for the Future.''
This Federal effort will also help State and local agencies verify
their ongoing efforts to identify what each level of government owns,
and permit the fair, efficient and equitable taxation of private
property. This will enable government at all levels to find missing
lands through a gap analysis that identifies properties on which taxes
are not being collected due to the inefficiencies in our systems. For
example, when the State of Wyoming used a GIS to audit the mass
appraisal process, it found that approximately 250,000 parcels were not
on the tax rolls.
Over the past decade, nearly 30 Governors and State Legislatures have
created State land inventories. Let me give you a few examples of what
some States have found.
In California, an inventory discovered that in 1955, the State
purchased a golf course in Oakland to make way for a highway. The road
was never built, and the State still owns the land, unbeknownst to any
State agency.
In South Carolina, a State commission found the University of South
Carolina, a State university, still owned Wedge Plantation, a 1,500
acre tract valued at $5 million, originally used for research of
insect-borne diseases, but now leased to a half-dozen hunters who pay
no rent.
While serving as Missouri State Auditor, my office issued a report
noting that the Missouri Department of Transportation lacked accurate
and reliable records of excess property and property being held for
future projects. The best MoDOT could do was estimate
[[Page S4491]]
the amount and value of the land they held.
The FLAIR Act addresses the twin problems of a lack of a single,
interoperable, current and accurate Federal land inventory, and the
proliferation of inefficient, duplicative, costly, inaccurate and out-
of-date inventories by authorizing the Department of the Interior to
develop and manage a single multipurpose, uniform Federal GIS database
to track and account for all Federal Real Property, as called for by
GAO and recommended by the National Academy.
Waste and duplication can be avoided if the Government knew what
inventories it had. The FLAIR Act also authorizes the Secretary of the
Interior to conduct an ``inventory of inventories'' to identify all
inventory databases, whether efficient or inefficient. The efficient
databases will be merged into a single multipurpose cadastre while the
inefficient databases are repealed, thus preventing waste and
duplication from continuing. By integrating the efficient databases,
redundancy can be identified and eliminated. Resources can be applied
to gaps in data rather than duplicative data.
Once a multipurpose inventory is complete, the government can become
a better real property asset manager, and a responsible steward of its
land holdings. This will result in more efficient land management,
again providing savings. That is what the FLAIR Act provides.
I urge my colleagues to join Senator Hatch and myself in enacting
this good-government bill.
______
By Mr. REID (for himself, Mrs. Boxer, Mr. Brown, Mr. Cardin, Mr.
Conrad, Mr. Dodd, Mr. Durbin, Mr. Johnson, Mr. Kennedy, Ms.
Klobuchar, Mr. Kohl, Mr. Lautenberg, Mr. Leahy, Mr. Levin, Mrs.
McCaskill, Ms. Mikulski, Mrs. Murray, Mr. Reed, Mr. Schumer,
Ms. Stabenow, and Mr. Whitehouse):
S. 3044. A bill to provide energy price relief and hold oil companies
and other entities accountable for their actions with regard to high
energy prices, and for other purposes; read the first time.
Mr. REID. Mr. President, I ask unanimous consent that the text of the
bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3044
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Consumer-
First Energy Act of 2008''.
(b) Table of Contents.--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.
SEC. 2. FINDINGS.
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.
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.
(a) In General.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) 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).''.
(b) Primary Product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
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.
(a) In General.--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:
``(a) Reduction in Amount Allowed as Foreign Tax Under
Section 901.--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--
``(1) the amount of the combined foreign oil and gas income
for the taxable year,
``(2) multiplied by--
``(A) in the case of a corporation, the percentage which is
equal to the highest rate of tax specified under section
11(b), or
``(B) 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
[[Page S4492]]
and the denominator of which is the taxpayer's entire taxable
income.
``(b) Combined Foreign Oil and Gas Income; Foreign Oil and
Gas Taxes.--For purposes of this section--
``(1) Combined foreign oil and gas income.--The term
`combined foreign oil and gas income' means, with respect to
any taxable year, the sum of--
``(A) foreign oil and gas extraction income, and
``(B) foreign oil related income.
``(2) Foreign oil and gas taxes.--The term `foreign oil and
gas taxes' means, with respect to any taxable year, the sum
of--
``(A) oil and gas extraction taxes, and
``(B) 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.''.
(b) Recapture of Foreign Oil and Gas Losses.--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:
``(4) Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas income.--
``(A) In general.--The combined foreign oil and gas income
of a taxpayer for a taxable year (determined without regard
to this paragraph) shall be reduced--
``(i) first by the amount determined under subparagraph
(B), and
``(ii) then by the amount determined under subparagraph
(C).
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.
``(B) Reduction for pre-2008 foreign oil extraction
losses.--The reduction under this paragraph shall be equal to
the lesser of--
``(i) the foreign oil and gas extraction income of the
taxpayer for the taxable year (determined without regard to
this paragraph), or
``(ii) the excess of--
``(I) the aggregate amount of foreign oil extraction losses
for preceding taxable years beginning after December 31,
1982, and before January 1, 2008, over
``(II) 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 Consumer-First Energy
Act of 2008) for preceding taxable years beginning after
December 31, 1982.
``(C) Reduction for post-2008 foreign oil and gas losses.--
The reduction under this paragraph shall be equal to the
lesser of--
``(i) 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
``(ii) the excess of--
``(I) the aggregate amount of foreign oil and gas losses
for preceding taxable years beginning after December 31,
2008, over
``(II) so much of such aggregate amount as was
recharacterized under this paragraph for preceding taxable
years beginning after December 31, 2008.
``(D) Foreign oil and gas loss defined.--
``(i) In general.--For purposes of this paragraph, the term
`foreign oil and gas loss' means the amount by which--
``(I) 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
``(II) the sum of the deductions properly apportioned or
allocated thereto.
``(ii) Net operating loss deduction not taken into
account.--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.
``(iii) Expropriation and casualty losses not taken into
account.--For purposes of clause (i), there shall not be
taken into account--
``(I) 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
``(II) any loss for the taxable year which arises from
fire, storm, shipwreck, or other casualty, or from theft,
to the extent such loss is not compensated for by insurance
or otherwise.
``(iv) Foreign oil extraction loss.--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 Consumer-First Energy
Act of 2008.''.
(c) Carryback and Carryover of Disallowed Credits.--Section
907(f) of the Internal Revenue Code of 1986 (relating to
carryback and carryover of disallowed credits) is amended--
(1) by striking ``oil and gas extraction taxes'' each place
it appears and inserting ``foreign oil and gas taxes'', and
(2) by adding at the end the following new paragraph:
``(4) Transition rules for pre-2009 and 2009 disallowed
credits.--
``(A) Pre-2009 credits.--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--
``(i) by substituting `oil and gas extraction taxes' for
`foreign oil and gas taxes' each place it appears in
paragraphs (1), (2), and (3), and
``(ii) by computing, for purposes of paragraph (2)(A), the
limitation under subparagraph (A) for the year to which such
taxes are carried by substituting `foreign oil and gas
extraction income' for `foreign oil and gas income' in
subsection (a).
``(B) 2009 credits.--In the case of any unused credit year
beginning in 2009, the amendments made to this subsection by
the Consumer-First Energy Act of 2008 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.''.
(d) Conforming Amendment.--Section 6501(i) of the Internal
Revenue Code of 1986 is amended by striking ``oil and gas
extraction taxes'' and inserting ``foreign oil and gas
taxes''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
SEC. 103. WINDFALL PROFITS TAX.
(a) In General.--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:
``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL
``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; qualified investment.
``Sec. 5898. Special rules and definitions.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--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--
``(1) the windfall profit of such taxpayer, over
``(2) the excess of--
``(A) the amount of the qualified investments of such
applicable taxpayer for such taxable year, over
``(B) the average of the qualified investment of such
applicable taxpayer for taxable years beginning during the
2002-2006 taxable year period.
``(b) Applicable Taxpayer.--For purposes of this chapter,
the term `applicable taxpayer' means any major integrated oil
company (as defined in section 167(h)(5)(B)).
``SEC. 5897. WINDFALL PROFIT; QUALIFIED INVESTMENT.
``(a) General Rule.--For purposes of this chapter, the term
`windfall profit' 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.
``(b) Adjusted Taxable Income.--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)--
``(1) increased by any interest expense deduction,
charitable contribution deduction, and any net operating loss
deduction carried forward from any prior taxable year, and
``(2) reduced by any interest income, dividend income, and
net operating losses to the extent such losses exceed taxable
income for the taxable year.
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.
``(c) Reasonably Inflated Average Profit.--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.
``(d) Qualified Investment.--For purposes of this chapter,
the term `qualified investment' means, with respect to any
applicable taxpayer, means any amount paid or incurred with
respect to--
``(1) 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
``(2) 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).
``SEC. 5898. SPECIAL RULES AND DEFINITIONS.
``(a) Withholding and Deposit of Tax.--The Secretary shall
provide such rules as are necessary for the withholding and
deposit of the tax imposed under section 5896.
``(b) Records and Information.--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.
``(c) Return of Windfall Profit Tax.--The Secretary shall
provide for the filing and
[[Page S4493]]
the time of such filing of the return of the tax imposed
under section 5896.
``(d) Crude Oil.--The term `crude oil' includes crude oil
condensates and natural gasoline.
``(e) Businesses Under Common Control.--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.
``(f) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this chapter.''.
(b) Clerical Amendment.--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:
``Chapter 56. Windfall Profit on Crude Oil.''.
(c) Deductibility of Windfall Profit Tax.--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:
``(6) The windfall profit tax imposed by section 5896.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 104. ENERGY INDEPENDENCE AND SECURITY TRUST FUND.
(a) Establishment.--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:
``SEC. 9511. ENERGY INDEPENDENCE AND SECURITY TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as
`Energy Independence and Security Trust Fund' (referred to in
this section as the `Trust Fund'), consisting of such amounts
as may be appropriated or credited to the Trust Fund as
provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--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 Consumer-First Energy Act of 2008.
``(c) Distribution of Amounts in Trust Fund.--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--
``(1) reduce the burdens on consumers of rising energy
prices;
``(2) diversify and expand the use of secure, efficient,
and environmentally-friendly energy supplies and
technologies;
``(3) result in net reductions in emissions of greenhouse
gases; and
``(4) prevent energy price gouging, profiteering, and
market manipulation.''.
(b) Clerical Amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding
at the end the following new item:
``Sec. 9511. Energy Independence and Security Trust Fund.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
TITLE II--PRICE GOUGING
SEC. 201. SHORT TITLE.
This title may be cited as the ``Petroleum Consumer Price
Gouging Protection Act''.
SEC. 202. DEFINITIONS.
In this title:
(1) Affected area.--The term ``affected area'' means an
area covered by a Presidential declaration of energy
emergency.
(2) Supplier.--The term ``supplier'' 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.
(3) Price gouging.--The term ``price gouging'' means the
charging of an unconscionably excessive price by a supplier
in an affected area.
(4) Unconscionably excessive price.--The term
``unconscionably excessive price'' 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--
(A)(i)(I) 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
(II) 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
(ii) represents an exercise of unfair leverage or
unconscionable means on the part of the supplier, during a
period of declared energy emergency; and
(B) 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.
(5) Commission.--The term ``Commission'' means the Federal
Trade Commission.
SEC. 203. ENERGY EMERGENCY AND ADDITIONAL PRICE GOUGING
ENFORCEMENT.
(a) In General.--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.
(b) Factors Considered.--In determining whether a violation
of subsection (a) has occurred, there shall be taken into
account, among other factors, whether--
(1) the price charged was a price that would reasonably
exist in a competitive and freely functioning market; and
(2) 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.
SEC. 204. PRESIDENTIAL DECLARATION OF ENERGY EMERGENCY.
(a) In General.--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.
(b) Scope and Duration.--The emergency declaration shall
specify--
(1) the period, not to exceed 30 days, for which the
declaration applies;
(2) the circumstance or condition necessitating the
declaration; and
(3) the area or region to which it applies which may not be
limited to a single State; and
(4) the product or products to which it applies.
(c) Extensions.--The President may--
(1) extend a declaration under subsection (a) for a period
of not more than 30 days;
(2) extend such a declaration more than once; and
(3) discontinue such a declaration before its expiration.
SEC. 205. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement.--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.
(b) Violation Is Treated as 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)).
(c) Commission Actions.--Following the declaration of an
energy emergency by the President under section 204 of this
title, the Commission shall--
(1) maintain within the Commission--
(A) a toll-free hotline that a consumer may call to report
an incident of price gouging in the affected area; and
(B) 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;
(2) 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
(3) 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.
SEC. 206. 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 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
[[Page S4494]]
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.
(b) Notice.--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.
(c) Authority to Intervene.--Upon receiving the notice
required by subsection (b), the Commission may intervene in
the civil action and, upon intervening--
(1) may be heard on all matters arising in such civil
action; and
(2) may 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, 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.
(g) No Preemption.--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.
SEC. 207. PENALTIES.
(a) Civil Penalty.--
(1) In general.--In addition to any penalty applicable
under the Federal Trade Commission Act, any supplier--
(A) that violates section 203 of this title is punishable
by a civil penalty of not more than $1,000,000; and
(B) that violates section 203 of this title is punishable
by a civil penalty of--
(i) 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
(ii) not more than $5,000,000 in the case of any other
supplier.
(2) Method.--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).
(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 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.
(b) Criminal Penalty.--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.
SEC. 208. EFFECT ON OTHER LAWS.
(a) Other Authority of the 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.
TITLE III--STRATEGIC PETROLEUM RESERVE
SEC. 301. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC
PETROLEUM RESERVE.
(a) In General.--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--
(1) the Secretary of the Interior shall suspend acquisition
of petroleum for the Strategic Petroleum Reserve through the
royalty-in-kind program; and
(2) the Secretary of Energy shall suspend acquisition of
petroleum for the Strategic Petroleum Reserve through any
other acquisition method.
(b) Resumption.--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--
(1) the Secretary of the Interior may resume acquisition of
petroleum for the Strategic Petroleum Reserve through the
royalty-in-kind program; and
(2) the Secretary of Energy may resume acquisition of
petroleum for the Strategic Petroleum Reserve through any
other acquisition method.
(c) Existing Contracts.--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.
TITLE IV--NO OIL PRODUCING AND EXPORTING CARTELS
SEC. 401. NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 2008.
(a) Short Title.--This section may be cited as the ``No Oil
Producing and Exporting Cartels Act of 2008'' or ``NOPEC''.
(b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is
amended by adding after section 7 the following:
``SEC. 7A. OIL PRODUCING CARTELS.
``(a) In General.--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--
``(1) to limit the production or distribution of oil,
natural gas, or any other petroleum product;
``(2) to set or maintain the price of oil, natural gas, or
any petroleum product; or
``(3) to otherwise take any action in restraint of trade
for oil, natural gas, or any petroleum product;
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.
``(b) Sovereign Immunity.--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.
``(c) Inapplicability of Act of State Doctrine.--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.
``(d) Enforcement.--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.''.
(c) Sovereign Immunity.--Section 1605(a) of title 28,
United States Code, is amended--
(1) in paragraph (6), by striking ``or'' after the
semicolon;
(2) in paragraph (7), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(8) in which the action is brought under section 7A of
the Sherman Act.''.
TITLE V--MARKET SPECULATION
SEC. 501. SPECULATIVE LIMITS AND TRANSPARENCY FOR OFF-SHORE
OIL TRADING.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is
amended by adding at the end the following:
``(e) Foreign Boards of Trade.--
``(1) In general.--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--
``(A) 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
``(B) 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.
``(2) Existing foreign boards of trade.--During the period
beginning 1 year after the
[[Page S4495]]
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.''.
SEC. 502. MARGIN LEVEL FOR CRUDE OIL.
(a) In General.--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:
``(G) Margin level for crude oil.--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.''.
(b) Studies.--
(1) Study relating to effect of certain regulations.--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.).
(2) Study relating to effects of changes in margin
levels.--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.
____________________