Citing the Failure to Lower Gas Price, Butterfield Votes Against Latest Energy Bill

Washington, DC—Congressman G. K. Butterfield said that he voted against the latest energy bill because it fails to address soaring gas prices and rising home heating costs.

“We’ve had two recent opportunities to address the rising costs of gasoline and home heating fuels, and twice Congress has failed to act,” Butterfield said. “Instead of addressing rising costs on working families, this bill benefits the same special interests that are profiting from the high prices.”

Today, the House voted 212 to 210 to approve the so-called “Gasoline for America's Security Act of 2005.” The five-minute vote was held open by the Republican leadership for an about 40 additional minutes in order to give Republicans the opportunity to sway their fellow Republicans to change their votes. The effort succeeded as two Republicans reversed their opposition and voted for the bill.

Butterfield voted against the bill, but voted for a substitute bill that addresses the rising costs with tough and effective anti-price gouging provisions. Butterfield’s said that substitute would have also created a Strategic Refinery Reserve to “increase our nation’s refinery capacity and prevent disruptions and price increases in times of disasters and emergency.”

“The bill that was passed really does nothing to reduce gas prices,” Butterfield said.

Butterfield explained that bill’s so-called price-gouging provision gives the Federal Trade Commission authority to go after price gouging by sellers of gasoline or diesel fuel only in those areas where the natural disaster has occurred.  Further, Butterfield said, these provisions appear directed towards small gas station owners rather than oil refiners – even as recent analysis found that retailers' margin at the pump increased about 5 percent while the refineries' prices have increased or 255 percent.

The substitute, Butterfield said, would have given explicit authority to the Federal Trade Commission to stop price gouging, not just for gasoline and diesel, but for natural gas, home heating oil, and propane. The substitute also provided for enhanced civil penalties equal to three times the amount of unjust profits gained or up to $3 million per day, explicitly outlaws market manipulation, and empowers State Attorneys General to enforce the Federal law on top of their state laws.

“Unfortunately, consumers are still going to face high prices and price gouging without any true protection,” Butterfield said.

Butterfield said the substitute legislation because it contained much strong protections for consumers. Among them, he said that the substitute provided for enhanced civil penalties equal to three times the amount of unjust profits gained or up to $3 million per day, explicitly outlaws market manipulation, and empowers State Attorneys General to enforce the Federal law on top of their state laws. By comparison, the legislation passed actually weakens the current law by capping penalties at $11,000 per day. Currently, the civil penalty is $11,000 per instance per day.

The bill does, however, create a new taxpayer subsidy for oil companies, Butterfield said.

“The bill provides an open-ended taxpayer subsidy to cover all the costs that an oil company may incur due to a delay in the initial operation of a new or upgraded oil refinery, including delays due to compliance with state or federal laws or regulations,” Butterfield said.

The bill was opposed by a wide variety of environmental, governmental and consumer groups.  Some of the opponents include National League of Cities, National Association of Counties, State Attorneys General (N.Y., Calif., Conn., Ill., Maryland, Mass., N.J., Vt., Wisc.), League of Conservation Voters, American Lung Association, Sierra Club, Friends of the Earth, National Environmental Trust, National Wildlife Federation, Public Citizen, Natural Resources Defense Council, Union of Concerned Scientists, U.S. Public Interest Research Group, and Consumer Federation of America.

Home | Press Releases by Date | Press Releases by Topic