WASHINGTON – Republicans in the U.S. House of Representatives Tuesday night blocked passage of legislation authored by U.S. Congressman Bart Stupak (D-Menominee) that would protect consumers from price gouging of gas, diesel and other fuels.  The 276 to 146 vote on H.R. 6346, the Federal Energy Price Gouging Prevention Act, fell six votes short of the two-thirds majority required to pass the bill under expedited procedure referred to as suspension of the rules.  Eleven Republicans who supported price gouging legislation in May 2007 reversed their votes Tuesday.

“With Americans paying an average of $4.07 a gallon for gas – and most northern Michigan residents paying even more than that – members of Congress had a chance to stand up for American consumers,” Stupak said.  “It is disappointing that so many House Republicans sided with Big Oil instead.”

Stupak’s bill, the Federal Price Gouging Prevention Act, would provide the Federal Trade Commission (FTC) with a clear, enforceable definition of price gouging.  The bill would authorize the Federal Trade Commission (FTC) to investigate and punish those who unreasonably inflate the price of energy, focusing enforcement on the worst offenders, specifically companies with sales of more than half a billion dollars a year.  It would impose tough criminal penalties: Corporations would face fines of up to $150 million; individuals would face fines up to $2 million and up to 10 years in jail.  Penalties collected from price gougers would go toward the Low Income Home Energy Assistance Program (LIHEAP). 

The House passed a similar Stupak bill (H.R. 1252) in May 2007 by a vote of 284 to 141.  President Bush has threatened to veto that legislation should it reach his desk.

“With prices rising, it makes sense that we would vote on this legislation before millions of Americans fill their gas tanks and hit the road for the Fourth of July,” Stupak said.  “Rather than voting to provide federal protection that ensures gas and diesel prices are justified, House Republicans voted to protect the handful of unscrupulous wholesalers, retailers and refiners raking in excessive profits from the very fuel prices crippling American families.”

In addition to Stupak’s price gouging bill, the House plans to consider a number of other energy proposals in the coming days and weeks to address record-high energy prices.  Specifically, the House will also consider legislation to:

·        Force oil companies to “use it or lose it” – Would compel the oil industry to start drilling or lose permits on the 68 million acres of undeveloped federal oil reserves which they are currently warehousing, keeping domestic supply low and prices high.

·        Close loopholes allowing speculators to manipulate energy prices – Would curb excessive speculation in the energy futures markets, which experts have noted is driving up the price of a barrel of oil by as much as half.

·        Reduce transit fares – Would provide grants to mass transit authorities to lower fares for commuters pinched at the pump and expand transit services.

Stupak introduced legislation on Friday to close the loopholes allowing energy speculators to artificially inflate prices.  H.R. 6330, the Prevent Unfair Manipulation of Prices (PUMP) Act, is the most comprehensive proposal in Congress to address the issues allowing energy traders to evade federal oversight.  The bill – which has been introduced in the House and Senate – has bipartisan support.

Stupak, as chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, held a seven-and-a-half hour hearing on Monday looking at energy speculation.  Multiple witnesses testified that enacting Stupak’s PUMP Act would have an immediate impact on energy prices, lowering the price of oil by $65 to $70 a barrel and corresponding gas prices by 30 to 50 percent within 30 days.

“As the House takes up additional energy proposals, I hope more of my Republican colleagues will abandon their failed energy policies,” Stupak said.  “The American people need Congress to get past the rhetoric.  Enacting a federal price gouging law, curbing excessive speculation and compelling the oil companies to use their existing drilling permits are all steps Congress can take today to provide real relief for consumers.”