 |
| House Passes Wilson Price Gouging Policy in Gasoline Act |
October 07, 2005 |
| |
| Gasoline Act Encourages Refining Capacity
Washington, DC – Congresswoman Heather Wilson today welcomed House passage 212-210 of the Gasoline for America’s Security (GAS) Act of 2005 and highlighted a new federal gasoline price gouging policy that includes stiff penalties for violations.
The Gasoline for America’s Security (GAS) Act of 2005, H.R. 3893, promotes domestic refining capacity. The legislation encourages new refineries to increase supply and address rising gasoline prices, promotes new pipeline for the distribution of crude oil and refined product to consumers, increases the capacity of Strategic Petroleum Reserve, and encourages conservation and carpooling. The Gasoline Act does not include proposed revisions to New Source Review regulations which would have relaxed emission and pollution control standards. In a Committee vote last week, Wilson opposed relaxing those standards.
“This is important legislation that encourages more gasoline refining capacity,” Wilson said. “We’ve included a strong national policy providing stiff penalties for gasoline price gouging. Times of tragedy should not be windfalls for opportunists.”
Wilson’s effort to ensure a federal policy against gasoline price gouging resulted in language in the bill providing for a penalty of up to $11,000 per price gouging violation. The policy would cover retail and wholesale sellers of crude oil, gasoline, diesel fuel and home heating oil.
Wilson introduced a gasoline price gouging amendment – which was the same as a bill she introduced September 14 – in the House Energy and Commerce Committee last week, but a weaker amendment was substituted at that time by a narrow 26-24 vote margin. A Manager’s Amendment filed late Thursday improved on the Committee’s provision by reverting to the Wilson-backed penalty of up to $11,000 per violation, and addressing other key concerns.
The Wilson Price-Gouging Provision:
Provides for a stronger Wilson-backed penalty of $11,000 per violation, instead of a proposal of $11,000 per day.
Ensures that the federal policy includes price gouging of crude oil and home heating oil.
Requires the FTC to enact a price gouging definition as soon as possible within six months, an improvement from the potential delay in the language reported out of Committee. Wilson expressed concerns with that delay.
Requires that FTC definition to be consistent with FTC rules defining unfair acts or practices.
Allows the President and the Secretary of Energy to extend the area of application beyond the declared disaster area, as necessary.
Background on Wilson’s Efforts on Gasoline Price Gouging
Wilson and Rep. Sherrod Brown, D-OH, initially introduced a bipartisan price gouging bill September 14, 2005, to give the Federal Trade Commission the authority to investigate price gouging by individuals or companies. That proposal called for stiff civil penalties of $11,000 per incident of price-gouging after an area has been declared a disaster area.
Wilson then introduced her proposal as an amendment last week in the House Energy and Commerce Committee, but it was weakened by a narrow 26-24 vote that substituted an amendment that did not contain key features of Wilson’s amendment. Four Republicans and 20 Democrats opposed the substitute. Wilson continued to negotiate with colleagues over the past week to gain support for a stronger provision.
The language that was included in the bill in Committee at that time would have allowed the Federal Trade Commission to take longer – up to two years – to create a definition and begin enforcing price gouging. It also contained weakened penalties. Wilson pressed for stronger provisions, including stiff fines to deter opportunists and a clear definition of price gouging. The Manager’s Amendment announced today addresses those concerns.
Federal legislation is needed, Wilson says, because only 23 states have anti-gouging laws on the books, and definitions vary widely. Without this bill, prosecution for price-gouging would continue to fall under state law unless it involved some form of collusion or other activity in violation of federal antitrust laws. Following the Hurricane Katrina disaster, gasoline prices fluctuated up to $6 per gallon in some communities. Wilson was concerned that current law does not adequately address price gouging that does not rise to the level of antitrust prohibitions.
- END - |
|
|
|