[Congressional Record (Bound Edition), Volume 151 (2005), Part 16]
[House]
[Pages 21354-21355]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 FEDERAL RESPONSE TO ENERGY EMERGENCIES

  The SPEAKER pro tempore (Mr. Poe). Under a previous order of the 
House, the gentleman from Michigan (Mr. Stupak) is recognized for 5 
minutes.
  Mr. STUPAK. Mr. Speaker, in the wake of Hurricane Katrina and Rita, 
Americans are pulling together, donating to relief organizations and 
giving their time to help the people of the gulf coast region. That is 
how the American people react when they see their fellow citizens in 
need. Unfortunately, some people have looked at Katrina not as a chance 
to give, but as an opportunity for excessive profits. Some have decided 
to take this terrible tragedy and line their own pockets by price 
gouging the American people at the gas pump.
  At a time when many Americans are choosing between filling their gas 
tanks or filling their prescriptions, oil companies are reaping record 
profits. People are rightly angry and frustrated with high gas prices, 
and they deserve to have someone on their side fighting to ensure that 
they do not get mugged at the gas pump. Sadly, this administration's 
answer has been to sit on its hands while consumers get the shakedown 
from the oil companies.
  Eight governors, including Governor Granholm of Michigan, sent a 
letter to the President and Senate and House leadership urging Congress 
to act immediately by putting forth legislation that would return 
excessive, unconscionable collected profits to the consumers. As the 
governor stated, and I quote, ``To price gouge consumers under normal 
circumstances is dishonest enough, but to make money off the severe 
misfortune of others is downright immoral.''
  It is obvious to me that Congress needs to protect the American 
people from price gouging and market manipulations. The Democratic 
bill, free from price gouging, is the Federal Response to Energy 
Emergencies bill. The FREE bill, as we call it, as authored by myself, 
the gentlewoman from South Dakota (Ms. Herseth), and the gentleman from 
North Carolina (Mr. Etheridge) is our answer to our Nation's record 
high gas prices and oil prices.
  If you look at this chart right here, from 2002 when gas was $1.34 a 
gallon, all the way up to September 12, 2005, where it is up to $2.96, 
that more than double. Just take it from 2004, when gas was $1.58. It 
has doubled in less than a year.
  Currently, only 28 States have laws on the books that define price 
gouging and that have enforcement mechanisms to go after those found 
ripping off consumers. At the Federal level, there is no oversight to 
protect consumers from this predatory pricing. That is why we need our 
legislation now, the ``free from price gouging'' legislation. No 
American should have to pay too much for gas because oil companies are 
rigging prices.
  Our bill would give the President authority to take immediate action 
in the face of an energy crisis by declaring a national energy 
emergency. Under our bill, for the first time ever, the Federal 
Government would have a guideline, a definition of price gouging. Our 
bill would also provide the FTC, the Federal Trade Commission and the 
Department of Justice with the authority to investigate and prosecute 
those that engage in predatory pricing, from oil companies all the way 
down to the local gas stations, with an emphasis on those who profit 
the most. This includes the gouging of gasoline, home heating oil, 
propane, and natural gas.
  Our legislation expands the FTC's authority to more aggressively 
pursue instances of market manipulation, such as geographic price 
setting and territorial restrictions imposed by refineries.
  If we look at the second chart, Mr. Speaker, which appeared this 
weekend in The Washington Post, just look at what has happened in 1 
year. As of September 5, 2005 of this year, from last September, we see 
a 46 percent increase from the crude oil producer; a 255 percent 
increase at the refinery level; a 5 percent increase for distributors 
and retailers, and taxes remain at 2 cents difference, with a 64-cent 
increase to the consumer. This is price manipulation. This is the 
market setting not the price, but the opportunity to manipulate and, as 
they call it, to game the system.
  So with our legislation, we want not only to stop price gouging, but 
also we want transparency. How does the consumer know when he is being 
charged a fair price for oil and gas when you see statistics like this? 
How is the price set? That is what the American people want to know. 
They want to make sure they are not being gouged or unduly taken 
advantage of by the oil companies, or the refineries in this case.

[[Page 21355]]

  Our bill empowers the Federal Government to impose tough civil 
penalties up to triple the damages of all excessive profits of oil 
companies that have cheated consumers. It also imposes tough criminal 
penalties of up to $100 million on corporations, and fines of up to $1 
million plus jail sentences of up to 10 years for individuals caught in 
manipulating the price of gas, home heating oil, or natural gas.
  This bill would provide relief to those paying skyrocketing energy 
and transportation costs and it would expand the Low-Income Home Energy 
Assistance Program through fines for those caught price gouging.
  Our bill would protect consumers from unfair gas prices and punish 
those who think the time of a tragedy is the right time to rob 
Americans of their hard-earned money. It is the right thing to do for 
consumers and for our Nation. I urge support of the free from price 
gouging bill.

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