To provide for the assessment of a penalty to gasoline retailers who charge prices grossly in excess of the prescribed index price for gasoline.

Summary: Gross Overcharging Undermines Gasoline Economics Act - Prohibits retail sales of gasoline for a price that exceeds the base price index multiplied by twice the rate of inflation, as adjusted according to a certain regional price structure index.

Instructs the Secretary of Energy to: (1) develop a regional price structure index to reflect regional variances in gasoline reformulation requirements and transportation costs; and (2) assess a civil penalty for a violation of this Act.

Directs the Federal Trade Commission to report annually to Congress on: (1) passive and active collusion to set gasoline prices;(2) antitrust practices throughout all supply chains in the oil industry; and (3) recommendations to protect consumers against gasoline price gouging.

Prohibits the Secretary from acquiring new petroleum products for, or placing any petroleum products in, the Strategic Petroleum Reserve (SPR).

Directs the Secretary to release from the SPR one million barrels of oil per day.

Establishes the Pricing and Economic Impact Commission to report to Congress on the effect of this Act upon: (1) domestic oil production; (2) foreign oil imports; (3) profits of the oil industry; (4) inflation; (5) employment; (6) economic growth; (7) federal revenues; and (8) national security.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gross Overcharging Undermines 
Gasoline Economics Act''.

SEC. 2. FINDINGS.

     Congress finds the following:
            (1) From May 2004 to May 2005, average United States 
        gasoline prices rose by 24 percent, according to the Energy 
        Information Administration.
            (2) Most United States oil companies showed huge profits 
        last year, some as much as 200 percent. The American people 
        have paid over and above their fair share of this increased 
        cost. Consumers have been at the whim of oil companies who use 
        record-breaking oil prices to make record-breaking profits.
            (3) Although 24 States have consumer protection statutes to 
        restrict prices that are ``unconscionable'', ``excessive'', or 
        ``grossly in excess'' of a specified amount, in all but one of 
        those States the prohibition applies only during a state of 
        emergency or natural disaster.
            (4) While consumers express concerns about being ``gouged'' 
        when prices spike at the gas pump, there is no legal definition 
        of gouging. The Federal Trade Commission has never found a 
        violation of Federal antitrust laws related to gasoline price 
        spikes. An in-depth investigation of the entire oil industry is 
        necessary to determine whether extra charges are driven by 
        collusion among oil companies or simply by legitimate market 
        influences.
            (5) With only a few nominal exceptions, gas prices are 
        expected to increase indefinitely. Higher fuel costs impact all 
        methods of transportation. As a result, the increased cost of 
        goods and services puts an even greater financial burden on 
        consumers.

SEC. 3. DEFINITIONS.

     In this Act--
            (1) the term ``base price index'' means the average of the 
        closing unit price on the New York Mercantile Exchange, for 
        contracts to purchase regular unleaded gasoline during the 
        subsequent calendar month, for the 10 days in each of the most 
        recent 2 preceding years which correspond to the 10 most recent 
        trading days; and
            (2) the term ``rate of inflation'' means the average 
        consumer price index for all urban consumers, not seasonally 
        adjusted, which corresponds to the time period between the days 
        used for calculating the base price index under paragraph (1).

SEC. 4. GASOLINE PRICE GOUGING.

    (a) Prohibition.--No person shall sell gasoline at retail for a 
price that exceeds the base price index multiplied by twice the rate of 
inflation, as adjusted according to the regional price structure index 
developed under subsection (b).
    (b) Regional Price Structure Index.--Not later than 30 days after 
the date of enactment of this Act, the Secretary of Energy shall 
develop a regional price structure index to reflect regional variances 
in gasoline reformulation requirements and transportation costs.
    (c) Penalty.--The Secretary of Energy shall assess a civil penalty 
for a violation of subsection (a) in the amount of--
            (1) not less than $5,000 for a first offense;
            (2) not less than $10,000 for a second offense; and
            (3) not more than $25,000 for any subsequent offense.
    (d) Offenses.--Each day on which a person violates subsection (a) 
shall constitute a separate offense for purposes of subsection (c).
    (e) Effective Date.--This section, except for subsection (b), shall 
take effect 90 days after the date of enactment of this Act.

SEC. 5. FEDERAL TRADE COMMISSION REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Federal Trade Commission shall transmit to 
Congress a report that--
            (1) examines passive and active collusion to set gasoline 
        prices;
            (2) examines antitrust practices throughout all supply 
        chains in the oil industry; and
            (3) recommends policies to protect consumers against 
        gasoline price gouging.

SEC. 6. STRATEGIC PETROLEUM RESERVE.

    (a) Findings.--Congress finds that--
            (1) the Strategic Petroleum Reserve was created to enhance 
        the physical and economic security of the United States;
            (2) the Energy Policy and Conservation Act allows the 
        Strategic Petroleum Reserve to be used to provide relief when 
        oil and gasoline supply shortages cause economic hardship;
            (3) the proper management of the resources of the Strategic 
        Petroleum Reserve could provide gasoline price relief to 
        families of the United States and provide the United States 
        with a tool to counterbalance the Organization of Petroleum 
        Exporting Countries' supply management policies; and
            (4) the United States current policy of filling the 
        Strategic Petroleum Reserve despite the fact that the Strategic 
        Petroleum Reserve is more than 98 percent full could further 
        exacerbate the rising price of crude oil and record high retail 
        price of gasoline.
    (b) Price Protection Measures.--
            (1) Initial measures.--For the period beginning on the date 
        of enactment of this Act and ending on the date that is 30 days 
        after such date of enactment--
                    (A) the Secretary of Energy shall not acquire any 
                new petroleum products for, or place any petroleum 
                products in, the Strategic Petroleum Reserve; and
                    (B) the Secretary of Energy shall release from the 
                Strategic Petroleum Reserve 1,000,000 barrels of oil 
                per day.
            (2) Subsequent measures.--If the President finds it 
        necessary, to lower the burden of gasoline prices on the 
        economy of the United States and to circumvent the efforts of 
        the Organization of Petroleum Exporting Countries to reap 
        windfall crude oil profits, the Secretary may continue the 
        measures described in paragraph (1)(A) and (B) for an 
        additional 30 days.

SEC. 7. PRICING AND ECONOMIC IMPACT COMMISSION.

    (a) Establishment.--The Secretary of Energy shall establish a 
commission to be known as the ``Pricing and Economic Impact 
Commission'' (in this section referred to as the ``Commission'').
    (b) Duties of Commission.--Not later than 1 year after the date of 
enactment of this Act, the Commission shall transmit to Congress a 
report containing recommendations on the effect of this Act on--
            (1) domestic oil production;
            (2) foreign oil imports;
            (3) profits of the oil industry;
            (4) inflation;
            (5) employment;
            (6) economic growth;
            (7) Federal revenues; and
            (8) national security.
    (c) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of 23 members as follows:
                    (A) 11 members appointed by the President. These 
                shall include no less than 1 member from each of 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.
                    (B) 6 members appointed by the House of 
                Representatives, of whom 3 shall be appointed by the 
                Speaker of the House of Representatives and 3 shall be 
                appointed by the minority leader.
                    (C) 6 members appointed by the Senate, of whom 3 
                shall be appointed by the majority leader and 3 shall 
                be appointed by the minority leader.
            (2) Qualifications.--In making appointments under this 
        subsection, the appointing authorities shall make a special 
        effort to appoint individuals who are particularly qualified to 
        perform the functions of the Commission, by reason of either 
        practical experience or academic expertise.
            (3) Terms and vacancies.--Each member shall be appointed 
        for the life of the Commission. A vacancy in the Commission 
        shall be filled in the manner in which the original appointment 
        was made.
            (4) Pay and travel.--Each member of the Commission, other 
        than a full-time officer or employee of the United States--
                    (A) shall be paid the daily equivalent of the 
                annual rate of basic pay payable for level V of the 
                Executive Schedule for each day (including travel time) 
                during which the member is engaged in the actual 
                performance of duties vested in the Commission; and
                    (B) shall receive travel expenses, including per 
                diem in lieu of subsistence, in accordance with 
                applicable provisions under subchapter I of chapter 57 
                of title 5, United States Code.
            (5) Quorum.--12 members of the Commission shall constitute 
        a quorum, but a lesser number may hold hearings.
            (6) Chairman.--The Chairman of the Commission shall be 
        elected by the members.
            (7) Meetings.--The Commission shall meet at the call of the 
        Chairman or a majority of its members.
    (d) Staff.--
            (1) In general.--With the approval of the Commission, the 
        Chairman may appoint and fix the pay of not more than six 
        individuals for the staff of the Commission. Such individuals 
        may be appointed without regard to the provisions of title 5, 
        United States Code, governing appointments in the competitive 
        service, and may be paid without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of that title 
        relating to classification and General Schedule pay rates, 
        except that an individual so appointed may not receive pay in 
        excess of the maximum annual rate of basic pay payable for 
        grade GS-15 of the General Schedule under section 5332 of title 
        5, United States Code.
            (2) Experts and consultants.--With the approval of the 
        Commission, the Chairman may procure temporary and intermittent 
        services in the manner prescribed in section 3109(b) of title 
        5, United States Code, but at rates for individuals not to 
        exceed the daily equivalent of the maximum annual rate of basic 
        pay payable for grade GS-15 of the General Schedule under 
        section 5332 of title 5, United States Code.
            (3) Staff of federal agencies.--Upon request of the 
        Commission, the head of any Federal department or agency may 
        detail, on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in carrying 
        out its duties under this section.
    (e) Powers of Commission.--
            (1) Hearings.--The Commission may, for the purpose of 
        carrying out this section, hold hearings, sit and act at times 
        and places, take testimony, and receive evidence as the 
        Commission considers appropriate.
            (2) Members and agents.--Any member or agent of the 
        Commission may, if authorized by the Commission, take any 
        action which the Commission is authorized to take by this 
        subsection.
            (3) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as departments 
        and agencies of the United States.
            (4) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its responsibilities under this section.
    (f) Authorization of Appropriations.--There will be authorized to 
be appropriated to carry out this section $2,000,000, to remain 
available until expended.
    (g) Termination.--The Commission shall cease to exist on the last 
day of the month in which its report is submitted under subsection (b).