STEARNS' AMENDMENT APPROVED BY ENERGY & COMMERCE COMMITTEE WHILE CONSIDERING THE GASOLINE FOR AMERICA'S SECURITY ACT

Washington, Sep 29, 2005 - "Hurricane Katrina made it clear that our nation lacks the refining capacity to satisfy our gasoline and diesel requirements, and Hurricane Rita underscored that point," said Rep. Cliff Stearns (R-Ocala).  "Although disasters bring out the best in the American people, some individuals and businesses see these emergencies as an opportunity to make easy money from the misfortunes of others.  Sharply increasing the price of gasoline beyond market conditions is price gouging, but the federal government has no effective means to stop price gouging.  That must change."

During consideration of H.R. 3893, the Gasoline for America's Security Act, the committee approved Stearns' amendment enhancing the Federal Trade Commission's (FTC's) ability to prosecute gasoline price gouging in the wake of natural disasters.  Explained Stearns, "My amendment directs the FTC to develop a definition of gasoline and diesel fuel price gouging.  The 'Gas Price Gouging Prevention' amendment empowers the FTC to aggressively target and prosecute those who engage in price gouging, while at the same time allowing the inherent efficiencies in the market to assist in flushing out these thieves. The amendment includes strong enforcement by subjecting violators to civil penalties up to $11,000 per day in which a violation occurs."

Stearns also joined the committee in approving H.R. 3893, which will increase America's domestic refining capacity.  "A few days after Katrina hit the gulf coast the price of gasoline rose 46 cents to $3.069 a gallon, this increase was due to a lack of refining capacity and reduced production in the gulf," stated Stearns.  "We have not built a new refinery in this country since 1976, but demand has increased sharply since then." The bill increases refining capacity by reforming siting requirements and procedures, promotes geographic diversity in siting new refineries, improves the delivery infrastructure (pipelines), encourages conservation, and expands the capacity of the Strategic Petroleum Reserve.