[House Report 109-245]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-245

======================================================================



 
   PROVIDING FOR CONSIDERATION OF H.R. 3893, GASOLINE FOR AMERICA'S 
                          SECURITY ACT OF 2005

                                _______
                                

  October 6, 2005.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Mr. Lincoln Diaz-Balart, from the Committee on Rules, submitted the 
                               following

                              R E P O R T

                       [To accompany H. Res. 481]

    The Committee on Rules, having had under consideration 
House Resolution 481, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3893, the 
Gasoline for America's Security Act of 2005, under a structured 
rule. The rule provides one hour of general debate equally 
divided and controlled by the chairman and ranking minority 
member of the Committee on Energy and Commerce. The rule waives 
all points of order against consideration of the bill.
    The rule provides that the bill shall be considered as 
read. The rule also provides that the amendment in the nature 
of a substitute recommended by the Committee on Energy and 
Commerce now printed in the bill, modified by the amendment 
printed in part A of this report, shall be considered as 
adopted.
    The rule makes in order the amendment printed in part B of 
this report, if offered by Representative Stupak of Michigan or 
his designee, which shall be considered as read, and which 
shall be debatable for 40 minutes equally divided and 
controlled by the proponent and an opponent. The rule waives 
all points of order against the amendment printed in part B of 
this report. Finally, the rule provides one motion to recommit 
with or without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill includes a waiver of clause 4(a) of rule XIII 
(requiring a three-day layover of the committee report) because 
the Committee on Energy and Commerce filed its report with the 
House on Thursday, October 6, 2005 and the bill may be 
considered by the House as early as Friday, October 7, 2005. 
The waiver of all points of order also includes a waiver of 
section 302(f) of the Congressional Budget Act (consideration 
of legislation providing new budget authority in excess of a 
subcommittee's 302(b) allocation of such authority). This 
waiver is necessary because section 111 of the bill as reported 
by the Energy and Commerce Committee causes that committee to 
be in breach of its committee allocation. By adoption of the 
rule the budgetary violation will cured and the waiver no 
longer applicable.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee Record Vote No. 126

    Date: October 6, 2005.
    Measure: H.R. 3893, the Gasoline for America's Security Act 
of 2005.
    Motion by: Mrs. Slaughter.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Larson which amends Title 1 of the Petroleum Marketing 
Practices Act of 1978 (PMPA) to prohibit oil companies from 
restricting the source of a gasoline dealer's supply of motor 
fuel.
    Results: Defeated 2 to 8.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee Record Vote No. 127

    Date: October 6, 2005.
    Measure: H.R. 3893, the Gasoline for America's Security Act 
of 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Eshoo which prohibits the President from designating property 
in the following federal lands as suitable for the siting of a 
refinery under expedited procedures: the National Wildlife 
Refuge System, National Conservation Areas, Wilderness Study 
Areas, the National Forest System, National Wild and Scenic 
Rivers System, the National Trails System, the National 
Landscape Conservation System. (The bill already prevents the 
President from making such designations for land within the 
National Park System, the National Wilderness Preservation 
System, and National Monuments. The amendment would not alter 
those restrictions.)
    Results: Defeated 2 to 8.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee Record Vote No. 128

    Date: October 6, 2005.
    Measure: H.R. 3893, the Gasoline for America's Security Act 
of 2005.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Representative 
Boehlert which directs the Secretary of Transportation to 
increase fuel economy standards from today's average of 25 
miles/gallon to 33 miles/gallon over 10 years (by 2016), 
consistent with the findings of the National Academy of 
Sciences, in order to save 10% of the gasoline the nation would 
otherwise consume by 2016. Directs the Secretary to maximize 
job retention in the American auto manufacturing sector and to 
prevent taking actions that would reduce safety. Authorizes the 
Secretary to implement a credit trading system between 
manufacturers, as well as a size-based classification system 
similar to the Administration's proposal for light trucks.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

           PART A--SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

    Barton: Managers' Amendment. The Managers' Amendment to 
H.R. 3893 amends the bill as reported out of Committee. 
Amendments to Sections 101 and 105 clarify that the Defense 
Base Closure and Realignment (``BRAC'') process must be 
followed for any closed military bases designated by the 
President as potential refinery sites. Section 111 is amended 
to offer small refiners a rebate instead of a direct discount 
where payment on the rebate would be subject to appropriations. 
Deletes Section 106 on New Source Review, Section 207 on Carbon 
Fuel Cells, and Title VI creating the Hydrogen Economy 
Commission. Amendments to sections 107, 108, 204, 205, and 501 
are technical in nature. The technical amendment to Section 108 
ensures provisions in Section 1541(b) of the Energy Policy Act 
of 2005 remain in effect. Sections 402 and 403 as amended to 
shorten the rulemaking required of the Federal Trade Commission 
and other technical changes. Section 403 as amended deleted 
that credit card study would not include a study of varying 
cost of credit card transactions to different channels of 
trade.

               PART B--SUMMARY OF AMENDMENT MADE IN ORDER

    Stupak: Amendment in the Nature of a Substitute. Gives 
explicit authority to the FTC to define price gouging. 
Preserves the FTC's existing civil penalty authority and 
authorizes new civil penalties of up to three times the amount 
of unjust profits gained by companies who engage in price 
gouging. Increases our nation's refinery capacity by 
establishing a federal Strategic Refinery Reserve which would 
build upon the success of the Strategic Petroleum Reserve (SPR) 
by creating a natural extension of the SPR--a refinery reserve. 
(40 minutes)

            PART A: TEXT OF AMENDMENT CONSIDERED AS ADOPTED

  In section 101(b)(1), strike the paragraph heading and insert 
the following: ``Designation requirement.--''.
  In section 101(b)(1), insert ``subject to paragraph (3)'' 
after ``including closed military installations''.
  In section 101(b)(1), strike ``Any such designation may be 
based on'' and insert the following:
          (2) Analysis of refinery sites.--In considering any 
        site on Federal lands for possible designation under 
        this subsection, the President shall conduct
  In section 101(b)(2)(C), as so redesignated by the previous 
amendment, strike ``such sites are'' and insert ``such site 
is''.
  In section 101(b)(2)(D), as so redesignated, strike 
``Nation's''.
  In section 101(b)(2)(F), as so redesignated, strike 
``national defense'' and insert ``the impact of locating a 
refinery on the site on the readiness and operations of the 
Armed Forces''.
  Strike the second paragraph (2) of section 101(b) and insert 
the following:
          (3) Special rules for closed military 
        installations.--
                  (A) Designation for consideration as refinery 
                site.--Among the sites designated pursuant to 
                this subsection, the President shall designate 
                no less than 3 closed military installations, 
                or portions thereof, as potentially suitable 
                for the construction of a refinery.
                  (B) Effect of designation.--In the case of a 
                closed military installation, or portion 
                thereof, designated by the President as a 
                potentially suitable refinery site pursuant to 
                this subsection--
                          (i) the redevelopment authority for 
                        the installation, in preparing or 
                        revising the redevelopment plan for the 
                        installation, shall consider the 
                        feasibility and practicability of 
                        siting a refinery on the installation; 
                        and
                          (ii) the Secretary of Defense, in 
                        managing and disposing of real property 
                        at the installation pursuant to the 
                        base closure law applicable to the 
                        installation, shall give substantial 
                        deference to the recommendations of the 
                        redevelopment authority, as contained 
                        in the redevelopment plan for the 
                        installation, regarding the siting of a 
                        refinery on the installation.
  Strike section 101(c) and insert the following:
  (c) Use of Designated Sites.--
          (1) Lease.--Except as provided in paragraph (2), the 
        Federal Government shall offer for lease any site 
        designated by the President under subsection (b) 
        consistent with procedures for the disposition of such 
        site under applicable Federal property laws. 
        Notwithstanding any provision of such Federal property 
        laws providing for the disposition or reuse of the 
        site, a lease under this paragraph shall be deemed to 
        be the appropriate disposition of the site. A site 
        shall not be leased under this paragraph except for the 
        purpose of construction of a refinery.
          (2) Special rules for closed military 
        installations.--Paragraph (1) shall not apply to a 
        closed military installation. The management and 
        disposal of real property at a closed military 
        installation, even a closed military installation or 
        portion thereof found to be suitable for the siting of 
        a refinery under subsection (b)(3), shall be carried 
        out in the manner provided by the base closure law 
        applicable to the installation.
  Strike section 101(d) and insert the following:
  (d) Applicability.--Section 102 shall only apply to a 
refinery sited or proposed to be sited or expanded or proposed 
to be expanded--
          (1) in a State whose governor has requested 
        applicability of such section pursuant to subsection 
        (a);
          (2) on a site (other than a closed military 
        installation or portion thereof) designated by the 
        President under subsection (b);
          (3) on a closed military installation, or portion 
        thereof, made available for the siting of a refinery in 
        the manner provided by the base closure law applicable 
        to the installation; or
          (4) on a site leased by the Secretary of a military 
        department under section 2667 of title 10, United 
        States Code, or by the Secretary of Defense under 
        section 2667a of such title for the siting of a 
        refinery.
  In section 101(e), redesignate paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively.
  In section 101(e), strike paragraph (1) and insert the 
following:
          (1) the term ``base closure law'' means the Defense 
        Base Closure and Realignment Act of 1990 (part A of 
        title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) 
        and title II of the Defense Authorization Amendments 
        and Base Closure and Realignment Act (Public Law 100-
        526; 10 U.S.C. 2687 note);
          (2) the term ``closed military installation'' means a 
        military installation closed or approved for closure 
        pursuant to a base closure law;
  In section 101(e)(3), as so redesignated--
          (1) strike ``and'' at the end of subparagraph (B);
          (2) strike ``and'' and insert ``or'' at the end of 
        subparagraph (C); and
          (3) add at the end the following new subparagraph:
                  (D) under the jurisdiction of the Department 
                of Defense or withdrawn from the public domain 
                for use by the Armed Forces (other than a 
                closed military installation); and
  Amend section 105(a) to read as follows:
  (a) Authorization.--If the President determines that there is 
not sufficient refining capacity in the United States, the 
President may authorize the design and construction of a 
refinery that will be--
          (1) located at a site--
                  (A) designated by the President under section 
                101(b), other than a closed military 
                installation or portion thereof; or
                  (B) on a closed military installation, or 
                portion thereof, made available for the siting 
                of a refinery in the manner provided by the 
                base closure law applicable to the 
                installation;
          (2) disposed of in the manner provided in paragraph 
        (1) of section 101(c) or, in the case of a closed 
        military installation, or portion thereof, paragraph 
        (2) of such section; and
          (3) reserved for the exclusive purpose of 
        manufacturing petroleum products for consumption by the 
        Armed Forces.
  In section 105(b), insert ``(or any combination thereof)'' 
after ``operation of a refinery''.
  In section 105(d), strike ``at a price not to exceed their 
fair market value'' and insert ``, at a price not to exceed the 
fair market value of the petroleum products,''.
  In section 105, add at the end the following new subsections:
  (e) Funding.--A contract for the design or construction of a 
refinery may not be entered into under this section in advance 
of the appropriation of funds sufficient for such purpose. 
Funds appropriated for the Department of Defense or for 
Department of Energy national security programs may not be used 
to enter into contracts under this section for the design, 
construction, or operation of a refinery. Funds appropriated 
for the Department of Defense may be used to purchase petroleum 
products manufactured at a refinery constructed under this 
section for use by the Armed Forces.
  (f) Definitions.--For purposes of this section, the terms 
``base closure law'' and ``closed military installation'' have 
the meanings given those terms in section 101.
  Strike section 106, redesignate sections 107 through 113 as 
section 106 through 112 respectively, and make the necessary 
conforming changes in the table of contents.
  In subclause (I) of clause (v) of the quoted matter in 
section 107(3), strike ``the President, in consultation with'' 
and all that follows through the end of the subclause and 
insert ``the President, in consultation with the Administrator 
and the Secretary of Energy may temporarily waive any control 
or prohibition respecting the use of a fuel or fuel additive 
required by this subsection or by subsection (h), (i), (k), or 
(m); and may, with respect to a State implementation plan, 
temporarily waive any equivalent control or prohibition 
respecting the use of a fuel or fuel additive required by this 
subparagraph. Nothing in this clause shall be construed to 
authorize the waiver of, or to affect in any way, any Federal 
or State law or regulation pertaining to ethanol or methyl 
tertiary butyl ether.''.
  In section 108, strike so much of subsection (a) as precedes 
the quoted material and insert the following:
  (a) List of Fuels.--Section 211(c)(4)(C) of the Clean Air Act 
(42 U.S.C. 7545(c)(4)(C)) is amended as follows:
          (1) By redesignating subclause (VI) of clause (viii) 
        (as so redesignated by section 107(1) of this Act) as 
        clause (x).
          (2) In such redesignated clause (x) by striking 
        ``this clause'' and inserting ``clause (viii) or clause 
        (ix)''.
          (3) By inserting the following new subclause at the 
        end of clause (viii) (as so redesignated by section 
        107(1) of this Act):
  ``(VI) The provisions of this clause, including the 
limitations of the authority of the Administrator and the limit 
on the total number of fuels permitted, shall remain in effect 
until the publication of the list under subclause (III) of 
clause (ix).''.
          (4) By inserting the following new clause after 
        clause (viii) (as so redesignated):
  In section 108, in the quoted material, strike ``(I) The 
Administrator'' and insert ``(ix)(I) The Administrator''.
  In section 108--
          (1) in the section heading, strike ``FUEL BLENDS'' 
        and insert ``FUELS'';
          (2) in subclause (I) in the quoted matter in 
        subsection (a)(3)--
                  (A) strike ``6 gasoline and diesel fuel 
                blends'' and insert ``6 gasoline and diesel 
                fuels'';
                  (B) strike ``one alternative diesel fuel 
                blend approved under this subparagraph before 
                enactment of this subclause'' and insert ``one 
                other diesel fuel'';
                  (C) strike ``2 additional gasoline blends'' 
                and insert ``2 additional gasolines''; and
                  (D) strike ``None of the fuel blends'' and 
                insert ``None of the fuels'';
          (3) in subclause (II) in the quoted matter in 
        subsection (a)(3), strike ``diesel fuel blends'' and 
        insert ``diesel fuels'';
          (4) in subclause (IV) in the quoted matter in 
        subsection (a)(3)--
                  (A) strike ``currently approved fuel blends'' 
                and insert ``currently approved fuels''; and
                  (B) strike ``the blends included'' and insert 
                ``the fuels included''; and
          (5) in the quoted matter in subsection (b)--
                  (A) strike ``the number of fuel blends'' and 
                insert ``the number of fuels'';
                  (B) strike ``one alternative diesel fuel 
                blend'' and insert ``one other diesel fuel''; 
                and
                  (C) strike ``additional gasoline blends'' and 
                insert ``additional gasolines''.
  Strike section 110 (relating to northwest crude oil supply) 
and make the necessary conforming changes in the table of 
contents.
  Amend section 111 to read as follows (and amend the table of 
contents accordingly):

SECTION 111. REBATES FOR SALES OF ROYALTY-IN-KIND OIL TO QUALIFIED 
                    SMALL REFINERIES.

  (a) Requirement.--The Secretary of the Interior shall issue 
and begin implementing regulations by not later than 60 days 
after the date of the enactment of this Act, under which the 
Secretary of the Interior shall pay to a qualified small 
refinery a rebate for any sale to the qualified small refinery 
of crude oil obtained by the United States as royalty-in-kind.
  (b) Amount of Rebate.--The amount of any rebate paid pursuant 
to this section with respect to any sale of crude oil to a 
qualified small refinery--
          (1) shall reflect the actual costs of transporting 
        such oil from the point of origin to the qualified 
        small refinery; and
          (2) shall not exceed $4.50 per barrel of oil sold.
  (c) Subject to Appropriations.--The requirement to pay 
rebates under this section is subject to the availability of 
funds provided in advance in appropriations Acts.
  (d) Termination.--This section and any regulations issued 
under this section shall not apply on and after any date on 
which the Secretary of Energy determines that United States 
domestic refining capacity is sufficient.
  (e) Qualified Small Refinery Defined.--In this section the 
term ``qualified small refinery'' means a refinery of a small 
business refiner (as that term is defined in section 45H(c)(1) 
of the Internal Revenue Code of 1986) that demonstrates to the 
Secretary of the Interior that it had unused crude oil 
processing capacity in 2004.
  In section 204, in the proposed paragraph (4), insert ``the'' 
after ``agreement pursuant to''.
  In section 205(2), in the proposed subsection (g)(1)(A), 
strike ``move natural gas'' and insert ``gather or transport 
natural gas''.
  In section 205(2), in the proposed subsection (g)(3)(A), 
strike ``gas service company'' and insert ``gas service 
provider''.
  Strike section 207 and make the necessary conforming changes 
in the table of contents.
  Amend section 402 to read as follows:

SEC. 402. GASOLINE PRICE GOUGING PROHIBITED.

  (a) Unlawful Conduct.--During a period of a major disaster, 
it shall be an unfair or deceptive act or practice in violation 
of section 5 of the Federal Trade Commission Act for any person 
to sell crude oil, gasoline, diesel fuel, or home heating oil 
at a price which constitutes price gouging as defined by rule 
pursuant to subsection (b).
  (b) Price Gouging.--Not later than 6 months after the date of 
the enactment of this Act, the Federal Trade Commission shall 
promulgate any rules necessary for the enforcement of this 
section. Such rules shall define ``price gouging'' for purposes 
of this section, and shall be consistent with the requirements 
for declaring unfair acts or practices in section 5(n) of the 
Federal Trade Commission Act (15 U.S.C. 45(n)).
  (c) Enforcement by FTC.--
          (1) In general.--A violation of subsection (a) shall 
        be treated as a violation of a rule defining an unfair 
        or deceptive act or practice prescribed under section 
        18(a)(1)(B) of the Federal Trade Commission Act (15 
        U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 
        shall enforce this section in the same manner, by the 
        same means, and with the same jurisdiction as though 
        all applicable terms and provisions of the Federal 
        Trade Commission Act were incorporated into and made a 
        part of this section.
          (2) Exclusive enforcement.--Notwithstanding any other 
        provision of law, no person or State or political 
        subdivision of a State other than the Federal Trade 
        Commission, or the Attorney General to the extent 
        provided for in section 5 of the Federal Trade 
        Commission Act, shall have any authority to enforce 
        this section, or any rule prescribed pursuant to this 
        section.
  (d) Penalties.--Any person who violates subsection (a), or 
the rules promulgated pursuant to this section, shall be 
subject to a civil penalty of not more than $11,000 per 
violation.
  (e) Definition of Major Disaster.--
          (1) Determination.--As used in this section, and for 
        purposes of any rule promulgated pursuant to this 
        section, the term ``major disaster'' means a major 
        disaster declared by the President as defined in 
        section 102(2) of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C 5122(2)) 
        that the Secretary of Energy determines to have 
        substantially disrupted the production, distribution, 
        or supply of crude oil, gasoline, diesel fuel, or home 
        heating oil.
          (2) Applicable area and period.--The prohibition in 
        subsection (a) shall apply to the United States or to a 
        specific geographic region of the United States as 
        determined by the President and the Secretary of Energy 
        at the time in which a determination under paragraph 
        (1) is made, and for a period of 30 days after such 
        determination is made. The President may extend the 
        prohibition for such additional 30-day periods as the 
        President determines necessary.
  Amend section 403(a)(5) to read as follows:
          (5) an analysis of the role and overall cost of 
        credit card interchange rates on gasoline and diesel 
        fuel retail prices.
  In section 501(a), strike ``Notwithstanding any other 
provision of law,'' and insert ``In addition to the authority 
provided under part B of title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6231 et seq.),''.
  Strike title VI and redesignate title VII as title VI and 
redesignate sections 701 through 704 as section 601 though 604 
respectively.

                PART B: TEXT OF AMENDMENT MADE IN ORDER

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Federal 
Response to Energy Emergencies Act of 2005''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1 Short title; table of contents.
        TITLE I--PROTECTING CONSUMERS FROM ENERGY PRICE GOUGING

Sec. 101. Unconscionable pricing of gasoline, oil, natural gas, and 
                            petroleum distillates during emergencies.
Sec. 102. Declaration of energy emergency.
Sec. 103. Enforcement by the Federal Trade Commission.
Sec. 104. Enforcement at retail level by State attorneys general.
Sec. 105. Low Income energy assistance.
Sec. 106. Effect on other laws.
Sec. 107. Market transparency for crude oil, gasoline, and petroleum 
                            distillates.
Sec. 108. Report on United States energy emergency preparedness.
Sec. 109. Protective action to prevent future disruptions of supply.
Sec. 110. Authorization of Appropriations.
   TITLE II--ENSURING EMERGENCY SUPPLY OF REFINED PETROLEUM PRODUCTS

Sec. 201. Refineries.

        TITLE I--PROTECTING CONSUMERS FROM ENERGY PRICE GOUGING

SEC. 101. UNCONSCIONABLE PRICING OF GASOLINE, OIL, NATURAL GAS, AND 
                    PETROLEUM DISTILLATES DURING EMERGENCIES.

  (a) Unconscionable Pricing.--
          (1) In general.--During any energy emergency declared 
        by the President under section 102, it is unlawful for 
        any person to sell crude oil, gasoline, natural gas, or 
        petroleum distillates in, or for use in, the area to 
        which that declaration applies at a price that--
                  (A) is unconscionably excessive; or
                  (B) indicates the seller is taking unfair 
                advantage of the 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 charged represents a gross 
                disparity between the price of the crude oil, 
                gasoline, natural gas, 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, natural gas, 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, 
        whether the price at which the crude oil, gasoline, 
        natural gas, or petroleum distillate was sold 
        reasonably reflects additional costs, not within the 
        control of the seller, that were paid or incurred by 
        the seller.
  (b) False Pricing Information.--It is unlawful for any person 
to report information related to the wholesale price of crude 
oil, gasoline, natural gas, 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 purposes with respect to 
        the market for crude oil, gasoline, natural gas, or 
        petroleum distillates.
  (c) Market Manipulation.--It is unlawful for any person, 
directly or indirectly, to use or employ, in connection with 
the purchase or sale of crude oil, gasoline, natural gas, or 
petroleum distillates at wholesale, any manipulative or 
deceptive device or contrivance, in contravention of such rules 
and regulations as the Federal Trade Commission may prescribe 
as necessary or appropriate in the public interest or for the 
protection of United States citizens.
  (d) Rulemaking.--Not later than 180 days after the date of 
the enactment of this title, the Federal Trade Commission shall 
promulgate rules necessary and appropriate to enforce this 
section.

SEC. 102. 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, natural 
gas, or petroleum distillates due to a disruption of the 
national distribution system for crude oil, gasoline, natural 
gas, or petroleum distillates (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))), or significant pricing anomalies in 
national or regional energy markets for crude oil, gasoline, 
natural gas, or petroleum distillates of a more than transient 
nature, the President may declare that a Federal energy 
emergency exists.
  (b) Scope and Duration.--The declaration shall apply to the 
Nation, a geographical region, or 1 or more States, as 
determined by the President, but may not be in effect for a 
period of more than 45 days.
  (c) Extensions.--The President may--
          (1) extend a declaration under subsection (a) for a 
        period of not more than 45 days; and
          (2) extend such a declaration more than once.

SEC. 103. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

  (a) Enforcement by FTC.--A violation of section 101 shall be 
treated as a violation of a rule defining an unfair or 
deceptive act or practice prescribed under section 18(a)(1)(B) 
of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). 
The Federal Trade Commission shall enforce this title in the 
same manner, by the same means, and with the same jurisdiction 
as though all applicable terms and provisions of the Federal 
Trade Commission Act were incorporated into and made a part of 
this title. In enforcing section 101(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.
  (b) Civil Penalties.--
          (1) In general.--Notwithstanding the penalties set 
        forth under the Federal Trade Commission Act, any 
        person who violates section 101 shall be subject to the 
        following penalties:
                  (A) Price gouging; unjust profits.--Any 
                person who violates section 101(a) shall be 
                subject to--
                          (i) a fine of not more than 3 times 
                        the amount of profits gained by such 
                        person through such violation; or
                          (ii) a fine of not more than 
                        $3,000,000.
                  (B) False information; market manipulation.--
                Any person who violates section 101(b) or 
                101(c) shall be subject to a civil penalty of 
                not more than $1,000,000.
          (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 Federal Trade 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.

SEC. 104. ENFORCEMENT AT RETAIL LEVEL 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 101(a) of this title, or to impose the civil 
penalties authorized by section 103(b)(1)(B), 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 or adversely affected by a violation of this title 
or a regulation under this title.
  (b) Notice.--The State shall serve written notice to the 
Federal Trade 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 Federal Trade 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 Federal Trade 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 
complaint of the Federal Trade 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. 105. LOW INCOME ENERGY ASSISTANCE.

  Amounts collected in fines and penalties under sections 103 
of this title shall be deposited in a separate fund in the 
treasury to be known as the Consumer Relief Trust Fund. To the 
extent provided for in advance in appropriations Acts, such 
fund shall be used to provide assistance under the Low Income 
Home Energy Assistance Program established under title XXVI of 
the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 8621 
et seq.).

SEC. 106. EFFECT ON OTHER LAWS.

  (a) Other Authority of Federal Trade Commission.--Nothing in 
this title shall be construed to limit or affect in any way the 
Federal Trade 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. 107. 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 Federal Trade 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 Federal Trade 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 Federal Trade 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.
          (3) Protection of market mechanisms.--The Federal 
        Trade 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 system 
        security.
  (c) Information Sources.--
          (1) In general.--In carrying out subsection (b), the 
        Federal Trade 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 Federal Trade Commission shall consider the degree 
        of price transparency provided by existing price 
        publishers and providers of trade processing services, 
        and shall rely on such publishers and services to the 
        maximum extent possible.
          (3) Electronic information systems.--The Federal 
        Trade Commission may establish an electronic 
        information system if it determines that existing price 
        publications are not adequately providing price 
        discovery or market transparency. Nothing in this 
        section, however, shall affect any electronic 
        information filing requirements in effect under this 
        title as of the date of enactment of this section.
          (4) De minimus exception.--The Federal Trade 
        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.--Within 180 days 
        after the date of enactment of this title, the Federal 
        Trade 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 may 
        be construed to limit or affect the exclusive 
        jurisdiction of the Commodity Futures Trading 
        Commission under the Commodity Exchange Act (7 U.S.C. 1 
        et seq.).
  (e) Rulemaking.--Within 180 days after the date of enactment 
of this title, the Federal Trade Commission shall initiate a 
rulemaking proceeding to establish such rules as the Commission 
determines to be necessary and appropriate to carry out this 
section.

SEC. 108. REPORT ON UNITED STATES ENERGY EMERGENCY PREPAREDNESS.

  (a) Potential Impacts Report.--Within 30 days after the date 
of enactment of this title, the Federal Trade Commission shall 
transmit to the Congress a confidential report describing the 
potential impact on domestic prices of crude oil, residual fuel 
oil, and refined petroleum products that would result from the 
disruption for periods of 1 week, 1 year, and 5 years, 
respectively, of not less than--
          (1) 30 percent of United States oil production;
          (2) 20 percent of United States refinery capacity; 
        and
          (3) 5 percent of global oil supplies.
  (b) Projections and Possible Remedies.--The President shall 
include in the report--
          (1) projections of the impact any such disruptions 
        would be likely to have on the United States economy; 
        and
          (2) detailed and prioritized recommendations for 
        remedies under each scenario covered by the report.

SEC. 109. PROTECTIVE ACTION TO PREVENT FUTURE DISRUPTIONS OF SUPPLY.

  The Secretary of Energy and the Energy Information 
Administration shall review expenditures by, and activities 
undertaken by, companies with total United States wholesale or 
retail sales of crude oil, gasoline, and petroleum distillates 
in excess of $500,000,000 per year to protect the energy supply 
system from terrorist attacks, international supply 
disruptions, and natural disasters, and ensure a stable and 
reasonably priced supply of such products to consumers in the 
United States, and, not later than 180 days after the date of 
the enactment of this title, shall transmit a report of their 
findings to Congress. Such report shall include an assessment 
of the companies' preparations for the forecasted period of 
more frequent and more intense hurricane activity in the Gulf 
of Mexico and other vulnerable coastal areas.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this title.

                          TITLE II--REFINERIES

SEC. 201. REFINERIES.

  Title I of the Energy Policy and Conservation Act is amended 
by adding at the end the following new part:

                          ``PART E--REFINERIES

``SEC. 191. STRATEGIC REFINERY RESERVE.

  ``(a) Establishment.--The Secretary shall establish and 
operate a Strategic Refinery Reserve in the United States. The 
Secretary may design and construct new refineries, or acquire 
closed refineries and reopen them, to carry out this section.
  ``(b) Operation.--The Secretary shall operate refineries in 
the Strategic Refinery Reserve for the following purposes:
          ``(1) During any period described in subsection (c), 
        to provide petroleum products to the general public.
          ``(2) To provide petroleum products to the Federal 
        Government, including the Department of Defense, as 
        well as State governments and political subdivisions 
        thereof who choose to purchase refined petroleum 
        products from the Strategic Refinery Reserve.
  ``(c) Emergency Periods.--The Secretary shall make petroleum 
products from the Strategic Refinery Reserve available under 
subsection (b)(1) only--
          ``(1) during a severe energy supply interruption, 
        within the meaning of such term under part B; or
          ``(2) if the President determines that there is a 
        regional petroleum product supply shortage of 
        significant scope and duration and that action taken 
        under subsection (b)(1) would assist directly and 
        significantly in reducing the adverse impact of such 
        shortage.
  ``(d) Locations.--In determining the location of a refinery 
for the Strategic Refinery Reserve, the Secretary shall take 
into account the following factors:
          ``(1) Impact on the local community (determined after 
        requesting and receiving comments from State, county or 
        parish, and municipal governments, and the public).
          ``(2) Regional vulnerability to a natural disaster.
          ``(3) Regional vulnerability to terrorist attacks.
          ``(4) Proximity to the Strategic Petroleum Reserve.
          ``(5) Accessibility to energy infrastructure.
          ``(6) The need to minimize adverse public health and 
        environmental impacts.
          ``(7) The energy needs of the Federal Government, 
        including the Department of Defense.
  ``(e) Increased Capacity.--The Secretary shall ensure that 
refineries in the Strategic Refinery Reserve are designed to 
enable a rapid increase in production capacity during periods 
described in subsection (c).
  ``(f) Implementation Plan.--Not later than 6 months after the 
date of enactment of this section, the Secretary shall transmit 
to the Congress a plan for the establishment and operation of 
the Strategic Refinery Reserve under this section. Such plan 
shall provide for establishing, within 2 years after the date 
of enactment of this section, and maintaining a capacity for 
the Reserve equal to 5 percent of the total United States daily 
demand for gasoline, home heating oil, and other refined 
petroleum products. If the Secretary finds that achieving such 
capacity within 2 years is not feasible, the Secretary shall 
explain in the plan the reasons therefor, and shall include 
provisions for achieving such capacity as soon as practicable. 
Such plan shall also provide for adequate delivery systems 
capable of providing Strategic Refinery Reserve product to the 
entities described in subsection (b)(2).
  ``(g) Compliance With Federal Environmental Requirements.--
Nothing in this section shall affect any requirement to comply 
with Federal or State environmental or other law.

``SEC. 192. REFINERY CLOSING REPORTS.

  ``(a) Closing Reports.--The owner or operator of a refinery 
in the United States shall notify the Secretary at least 6 
months in advance of permanently closing the refinery, and 
shall include in such notice an explanation of the reasons for 
the proposed closing.
  ``(b) Reports to Congress.--The Secretary, in consultation 
with the Federal Trade Commission, shall promptly report to the 
Congress any report received under subsection (a), along with 
an analysis of the effects the proposed closing would have on 
petroleum product prices, competition in the refining industry, 
the national economy, regional economies and regional supplies 
of refined petroleum products, and United States energy 
security.''.

                                  
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