INCLUDED IN BILL TO LOWER GAS PRICES BY ENHANCING OUR DOMESTIC REFINING CAPACITY

Washington, Oct 7, 2005 - The House today approved H.R. 3893, the Gasoline for America's Security (GAS) Act, crafted to reduce the price of diesel and gasoline. During consideration of H.R. 3893, the House added Stearns' proposal that gives the federal government, for the first time, the authority to combat price gouging.

Explained Stearns, "Although disasters bring out the best in the American people, some individuals see these emergencies as an opportunity to make easy money from the misfortunes of others. My proposal directs the FTC to develop a definition of gasoline and diesel fuel price gouging, while prohibiting price gouging for crude oil, home heating oil, gasoline, and diesel fuel. It makes price gouging an unfair practice under the FTC and defines it as causing or likely causing substantial injury to consumers; not reasonably avoidable by consumers themselves; and not outweighed by countervailing benefits to consumers or to competition. The provision is triggered for 30 days in the affected areas and can be extended beyond if the President, in consultation with the Secretary of Energy, deems it appropriate. It also includes strong enforcement by subjecting violators to civil penalties up to $11,000 per instance in which a violation occurs."

H.R. 3893 will help consumers with the high price of gas by increasing America's refining capacity and streamlining fuel supply. "We have not built a new refinery in this nation since the 1970s, and our demand for diesel and gasoline has increased sharply since then," said Stearns. "The jump in gas prices after the recent storms underscores the fact that we need to expand our refining capacity." The bill encourages the building of new refineries through regulatory relief and risk insurance. It reforms cumbersome siting procedures at the request of a state's governor and requires the President to designate sites on federal land that are appropriate for siting a refinery.