Volume 151, No. 81 covering the 1st Session of the 109th Congress (2005 - 2006) was published by the Congressional Record.
The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“INTRODUCTION ON THE GROSS OVERCHARGING UNDERMINES GASOLINE ECONOMICS, OR GOUGE ACT” mentioning the Environmental Protection Agency was published in the Extensions of Remarks section on pages E1262-E1263 on June 17, 2005.
The publication is reproduced in full below:
INTRODUCTION ON THE GROSS OVERCHARGING UNDERMINES GASOLINE ECONOMICS,
OR GOUGE ACT
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HON. ALCEE L. HASTINGS
of florida
in the house of representatives
Thursday, June 16, 2005
Mr. HASTINGS of Florida. Mr. Speaker, I rise today to introduce the Gross Overcharging Undermines Gasoline Economics, or GOUGE Act.
As the travel season approaches, many children are out of school and families are happily looking forward to vacations. What they won't be happy about is the skyrocketing cost of getting to their destinations. Unfortunately, whether traveling on the road or in the air, this summer's vacationers will be hit hard by the escalating cost of gasoline.
From March to April of 2005, the cost to fill up a tank of gas rose by more than 10 percent. That's more than twice the increase for the same period last year! But the detrimental effects of high gas prices don't just stop at the pump--they domino throughout every segment of the economy. For a basic item like a loaf of bread, it costs more to fertilize the wheat, more to transport the wheat to the baker, more for the plastic bag to package the bread, and more to get it to the grocery store.
Meanwhile, President Bush has suggested little to lessen the impact of high gas prices. In fact, the President doesn't believe anything can be done. In April 2005, he was quoted as saying, ``An energy bill wouldn't change the price at the pump today. I know that and you know that.''
With all due respect, Mr. President, plenty can and must be done. The Internet is full of comments from people reporting sudden gasoline price increases. In some cases, consumers have witnessed a 10-cent increase in less than 24 hours. There is no possible reason or explanation for these overnight increases. While states across the country are doing what they can to deal with complaints, they have limited recourse to make lasting, beneficial changes until there are consistent federal guidelines.
The GOUGE Act that I am introducing today addresses federal guidelines against gas gouging in four parts. First, the bill imposes a penalty on gas retailers who raise prices on any given day at a rate that is twice the inflation rate. Prices are compared to a base price index derived from the contract price on the New York Mercantile Exchange and adjusted for regional variances. These variances take into account stringent pollution controls, altitude requirements, and special reformulations across the country. The penalties would be no less than $5000 for the 1st offense, no less than $10,000 for the 2nd offense, and no less than $25,000 for the 3rd offense or thereafter.
A steady supply of oil is critical to cost effective gasoline production as well as national security. The second part of my bill helps to ensure this supply through use of the Strategic Petroleum Reserve (SPR).
Following the oil embargo in 1975, the SPR was created to provide a domestic inventory of crude oil, and was intended to be used in emergency situations when the supply of crude oil to the United States is disrupted. The first such use of the SPR was in 1991 during the Iraqi invasion of Kuwait by then President George H. W. Bush.
The current Administration, however, has a very different policy on the SPR. In November 2001, President George W. Bush ordered the SPR be filled to its current 700 million barrel capacity with oil from the government's share federally leased oil sites. Since then, maintaining this capacity has had a detrimental affect on oil price increases. First, continuing to fill the SPR at the same time it is 98% full takes oil from the open market, decreasing supply and thereby potentially increasing prices. Second, these additional fills to the SPR are being made while crude prices remain high and volatile. My bill suspends these new fills and releases an additional million barrels per day onto the open market for 30 days to significantly ease market concerns that lead to artificially inflated prices. The laws of supply and demand clearly support this idea as a basic tenet of economics.
Third, the GOUGE Act directs the Federal Trade Commission (FTC) to report on anti-trust practices throughout the oil industry and to make recommendations to protect consumers from price gouging. This report is essential for putting the oil industry on notice and developing sound federal price gouging legislation.
Finally, my legislation establishes a Pricing and Economic Impact Commission to review the effect of oil supply and demand on the U.S. economy and national security. The Commission will be comprised or 23 members. The President will appoint 11 members total (including at least 1 each) from the Environmental Protection Agency, the Department of Transportation, the Department of Energy, the Department of Commerce, the Council of Economic Advisors, and the Office of Science and Technology. There will also be 12 members appointed by the House and Senate.
Mr. Speaker, our economy depends on reasonable gasoline prices to produce and transport items we use everyday. Without some kind of protection, we all pay higher prices for everything from food to pharmaceuticals. Now that the bubble on fuel cost has burst, prices will only increase. Without action, the supply demands of this summer will soon give way to increased requirements for the winter heating. My legislation works to protect consumers from arbitrary price increases by gas retailers, make effective use of the Strategic Petroleum Preserve, and monitor price irregularities in the oil industry.
I ask for my colleagues' support and urge the House Leadership to bring it swiftly to the House floor for consideration.
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