To direct the Federal Trade Commission to investigate how speculators are driving up the cost of gasoline in the financial markets, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Fraud and Fairness Reform 
Act''.

                   TITLE I--FEDERAL TRADE COMMISSION

SEC. 101. INVESTIGATION OF GASOLINE PRICES.

    (a) Investigation.--Not later than 30 days after the date of the 
enactment of this Act, the Federal Trade Commission shall commence an 
investigation to determine if the price of gasoline is being 
artificially manipulated by speculation in the oil markets and 
specifically at the Intercontinental Exchange in Atlanta, Georgia.
    (b) Report to Congress.--Not later than 90 days after the date of 
the enactment of this Act, the Federal Trade Commission shall transmit 
to Congress a report that describes--
            (1) the progress of the investigation; and
            (2) any recommendations of the Federal Trade Commission 
        regarding any legislation necessary to address speculation in 
        the oil markets.

                        TITLE II--TAX PROVISIONS

SEC. 201. INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (a) of section 30C of the Internal 
Revenue Code of 1986 (relating to credit allowed for alternative fuel 
vehicle refueling property) is amended by striking ``30 percent'' and 
inserting ``50 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after the date of the enactment of 
this Act in taxable years ending after such date.

SEC. 202. CREDIT FOR CONVERTING GAS AND DIESEL PROPELLED MOTOR VEHICLES 
              TO VEHICLES PROPELLED BY ALTERNATIVE FUEL, CLEAN FUEL, OR 
              FUEL CELLS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30D. CONVERSION OF GAS AND DIESEL PROPELLED MOTOR VEHICLES 
              PROPELLED BY ALTERNATIVE FUEL, CLEAN FUEL, OR FUEL CELLS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the aggregate costs of a qualified conversion of a motor 
vehicle--
            ``(1) which, after such conversion, is placed in service by 
        the taxpayer during the taxable year,
            ``(2) of which the original use after such conversion 
        commences with the taxpayer, and
            ``(3) which, after such conversion, is for use or lease by 
        the taxpayer and not for resale or lease to others.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified conversion.--The term `qualified 
        conversion' means the conversion of a motor vehicle from a 
        vehicle that is propelled by gasoline or diesel fuel to a 
        vehicle that is propelled by alternative fuel, clean fuel, or 
        fuel cells.
            ``(2) Alternative fuel.--The term `alternative fuel' has 
        the meaning given such term by section 6426(d)(2), determined 
        without regard to the last sentence thereof.
            ``(3) Clean fuel.--The term `clean fuel' has the meaning 
        given such term by section 179A(e)(1).
            ``(4) Fuel cell.--The term `fuel cell' means qualified fuel 
        cell property (as defined in section 48(c)(1)).
            ``(5) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
    ``(c) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(d) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit (determined without regard to 
        subsection (d)).
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc., not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any conversion of a vehicle if 
        the taxpayer elects to not have this section apply to such 
        conversion.
            ``(5) Denial of double benefit.--
                    ``(A) If a credit is allowed under section 30B with 
                respect to a vehicle, not credit shall be allowed under 
                this section with respect to such vehicle.
                    ``(B) No amount taken into account under this 
                section shall be allowed as a deduction under any other 
                provision of this subtitle.
            ``(6) Property used by tax-exempt entity; interaction with 
        air quality and motor vehicle safety standards.--Rules similar 
        to the rules of paragraphs (6) and (10) of section 30B(h) shall 
        apply for purposes of this section.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (32), 
by striking the period at the end of paragraph (33) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(34) the portion of the motor vehicle conversion credit 
        to which section 30D(d)(1) applies.''.
    (c) Conforming Amendments.--
            (1) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (35), by striking the period at 
        the end of paragraph (36) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(37) to the extent provided in section 30D(e)(1).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30D(e)(4),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30D. Conversion of gas and diesel propelled motor vehicles 
                            propelled by alternative fuel, clean fuel, 
                            or fuel cells.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

                   TITLE III--REFINERY CAPACITY STUDY

SEC. 301. REFINERY CAPACITY STUDY.

    Not later than 90 days after the date of enactment of this Act, the 
Comptroller General shall transmit to Congress a report containing the 
results of a study of refinery capacity in the United States. Such 
study shall address--
            (1) the impacts United States refinery capacity has on 
        gasoline prices;
            (2) regulatory and other barriers to the construction and 
        operation of sufficient United States refinery capacity, 
        including possible collusion among oil companies; and
            (3) how oil companies use funding received from the Federal 
        Government, and whether those Federal dollars expand our 
        domestic oil supply or just go to dividends and stock buybacks.

Summary: Energy Fraud and Fairness Reform Act - Directs the Federal Trade Commission (FTC) to investigate and report to Congress on whether the price of gasoline is being artificially manipulated by speculation in the oil markets, specifically at the Intercontinental Exchange in Atlanta, Georgia. Amends the Internal Revenue Code to increase the alternative fuel vehicle refueling property credit from 30 to 50 of the cost of such a property placed in service by a taxpayer during the year. Allows a tax credit for conversion of gas and diesel propelled motor vehicles to vehicles propelled by alternative fuel, clean fuel, or fuel cells. Requires the Comptroller General of the United States to study and report to Congress on the refinery capacity of the United States.