I 

109TH CONGRESS 

1ST SESSION H. R. 3544 

To provide for the stabilization of prices for gasoline, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 28, 2005 

Mr. DEFAZIO (for himself and Mr. SANDERS) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committees on Ways and Means, Government Reform, 

the Judiciary, Resources, and International Relations, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To provide for the stabilization of prices for gasoline, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Gasoline Price Stabilization Act of 2005’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Authorization for gasoline price stabilization. 

Sec. 3. Strategic petroleum reserve drawdown. 
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Sec. 4. Requirement for the release of oil from the Strategic Petroleum Reserve. 

Sec. 5. Minimum inventory levels. 

Sec. 6. Ban on exporting of Alaskan oil. 

Sec. 7. Sense of Congress regarding the Organization of the Petroleum Exporting Countries and the World Trade Organization. 

Sec. 8. Windfall profits tax. 

Sec. 9. Merger moratoriums. 

Sec. 10. Petroleum Industry Concentration and Market Power Review Commission. 

Sec. 11. Increased average fuel economy standards for passenger automobiles 

and light trucks. 

Sec. 12. Fuel economy of the Federal fleet of vehicles. 

1 SEC. 2. AUTHORIZATION FOR GASOLINE PRICE STABILIZA2 TION. 

3 (a) PRESIDENTIAL AUTHORITY.—The President may 

4 issue such orders and regulations as he may deem appro5 priate, including price caps, to stabilize prices for whole6 sale and retail gasoline to levels at or below levels pre7 vailing on March 1, 2004, if the President makes a deter8 mination that— 

9 (1) there is an increase in gasoline prices 

10 that— 

11 (A) is of significant scope and duration; 

12 and 

13 (B) is likely to cause a significant adverse 

14 impact on the national economy, or on a State 

15 or regional economy; and 

16 (2) the price increase is substantially caused by 

17 conduct that lessens competition (or tends to create 

18 a monopoly) by— 
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1 (A) at least one foreign country or inter2 national entity; or 

3 (B) at least one producer, refiner, or mar4 keter of petroleum products. 

5 (b) CIVIL MONEY PENALTY.—Whoever willfully vio6 lates any order or regulation issued under this section 

7 shall be subject to a civil money penalty for each violation 

8 of not more than $1,000,000. 

9 (c) INJUNCTIONS.—Whenever it appears to any agen10 cy of the United States, authorized by the President to 

11 exercise the authority contained in this subsection to en12 force orders and regulations issued under this section, that 

13 any person has engaged, is engaged, or is about to engage 

14 in any acts or practices constituting a violation of any 

15 order or regulation under this section, such agency may 

16 in its discretion bring an action, in the proper district 

17 court of the United States or the proper United States 

18 court of any territory or other place subject to the jurisdic19 tion of the United States, to enjoin such acts or practices, 

20 and upon a proper showing the court may issue a perma21 nent or temporary injunction or restraining order without 

22 bond. Upon application of the agency, any such court may 

23 also order any person to comply with any order or regula24 tion under this section. 

25 (d) EXPIRATION.— 
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), this section shall cease to have effect one 

3 year after the date of the enactment of this Act. 

4 (2) EXCEPTION.—Paragraph (1) shall not af5 fect enforcement relating to a violation of this sec6 tion occurring before the expiration date in para7 graph (1). 

8 SEC. 3. STRATEGIC PETROLEUM RESERVE DRAWDOWN. 

9 (a) DRAWDOWNS AUTHORIZED TO ADDRESS STATE

10 OR REGIONAL ECONOMIC HARM.—Section 161(d)(2)(C) 

11 of the Energy Policy and Conservation Act (42 U.S.C. 

12 6241(d)(2)(C)) is amended by inserting ‘‘, or on a State 

13 or regional economy’’ after ‘‘national economy’’. 

14 (b) DRAWDOWNS AUTHORIZED TO COMBAT ANTI15 COMPETITIVE CONDUCT.—Section 161(d) of the Energy 

16 Policy and Conservation Act (42 U.S.C. 6241(d)) is fur17 ther amended by adding at the end the following new para18 graph: 

19 ‘‘(3)(A) For purposes of this section, in addition to 

20 the circumstances set forth in section 3(8) and in para21 graph (2) of this subsection, a severe energy supply inter22 ruption exists if the President determines that— 

23 ‘‘(i) there is a significant reduction in supply 

24 that— 
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1 ‘‘(I) is of significant scope and duration; 

2 and 

3 ‘‘(II) has caused a significant increase in 

4 the price of petroleum products; 

5 ‘‘(ii) the increase in price is likely to cause a 

6 significant adverse impact on the national economy, 

7 or on a State or regional economy; and 

8 ‘‘(iii) the reduction in supply is substantially 

9 caused by conduct that lessens competition (or tends 

10 to create a monopoly) by— 

11 ‘‘(I) at least one foreign country or inter12 national entity; or 

13 ‘‘(II) at least one producer, refiner, or 

14 marketer of petroleum products. 

15 ‘‘(B) Proceeds from the sale of petroleum drawn 

16 down pursuant to a Presidential determination under sub17 paragraph (A) shall— 

18 ‘‘(i) be deposited in the SPR Petroleum Ac19 count established under section 167; and 

20 ‘‘(ii) be used only for the purposes specified in 

21 such section.’’. 

22 (c) REPORTING AND CONSULTATION REQUIRE23 MENTS.—When the price of a barrel of crude oil exceeds 

24 $30 (in constant 2005 United States dollars) on the New 

25 York Mercantile Exchange for a period greater than 14 
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1 days, the President, through the Secretary of Energy, 

2 shall, not later than 30 days after the end of the 14-day 

3 period, submit to Congress a report that— 

4 (1) states the results of a comprehensive review 

5 of the causes and potential consequences of the price 

6 increase; 

7 (2) provides an estimate of the likely duration 

8 of the price increase, based on analyses and fore9 casts of the Energy Information Administration; 

10 (3) provides an analysis of the effects of the 

11 price increase on the cost of gasoline at the whole12 sale and retail levels; and 

13 (4) states whether, and provides a specific ra14 tionale for why, the President does or does not sup15 port the drawdown and distribution of a specified 

16 amount of oil from the Strategic Petroleum Reserve. 

17 (d) GENERAL ACCOUNTING OFFICE STUDY.—The 

18 Comptroller General of the United States shall, not later 

19 than one year after the date of the enactment of this Act, 

20 submit to Congress a review of the drawdown authority 

21 of the President with respect to the Strategic Petroleum 

22 Reserve. Such review shall address— 

23 (1) how and why the authority has changed 

24 over time; 
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1 (2) under what circumstances Presidents have 

2 actually exercised the authority; 

3 (3) what the impact on oil prices was as a re4 sult of the exercising of the presidential authority; 

5 and 

6 (4) the implications of expanding the drawdown 

7 authority beyond the severe energy supply interrup8 tion standard described in section 3(8) or 161(d) of 

9 the Energy Policy and Conservation Act (42 U.S.C. 

10 6202(8), 6241(d)), by— 

11 (A) allowing the release of oil as a regular 

12 hedging tool for oil companies; 

13 (B) allowing such companies to tap the 

14 Strategic Petroleum Reserve as necessary to 

15 dampen price shocks; and 

16 (C) requiring such companies to replace 

17 the oil (and additional barrels) at some pre18 determined time in the future. 

19 SEC. 4. REQUIREMENT FOR THE RELEASE OF OIL FROM 

20 THE STRATEGIC PETROLEUM RESERVE. 

21 (a) FINDINGS.—Congress makes the following find22 ings: 

23 (1) The prices of gasoline and crude oil have a 

24 direct and substantial impact on the financial well25 being of families and businesses in the United 
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1 States, on the potential for national economic recov2 ery, and on the economic security of the United 

3 States. 

4 (2) The Strategic Petroleum Reserve was cre5 ated to enhance the physical and economic security 

6 of the United States, and the law allows the Stra7 tegic Petroleum Reserve to be used to provide relief 

8 when oil and gasoline supply shortages cause eco9 nomic hardship. 

10 (3) The proper management of the resources of 

11 the Strategic Petroleum Reserve could provide gaso12 line price relief to families in the United States and 

13 provide the United States with a tool to counter14 balance the supply management policies of the Orga15 nization of the Petroleum Exporting Countries. 

16 (4) In order to combat high gasoline prices dur17 ing the summer and fall of 2000, President Clinton 

18 released 30,000,000 barrels of oil from the Strategic 

19 Petroleum Reserve and stabilized the price of gaso20 line. 

21 (b) REQUIREMENT.—For purposes of lowering the 

22 burden of gasoline prices on the economy of the United 

23 States and circumventing the Organization of the Petro24 leum Exporting Countries’ efforts to reap windfall crude 
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1 oil profits and starting on the date of the enactment of 

2 this Act, the President shall— 

3 (1) suspend the delivery of oil to the Strategic 

4 Petroleum Reserve until the date on which the price 

5 for a gallon of gasoline, as reported by the United 

6 States Energy Information Administration, is less 

7 than $1.50 per gallon; and 

8 (2) release at least 1,000,000 barrels of oil per 

9 day from the Strategic Petroleum Reserve until the 

10 sooner of — 

11 (A) the date that is 60 days following the 

12 date of the enactment of this Act; or 

13 (B) the date on which the average price for 

14 a gallon of gasoline, as reported by the United 

15 States Energy Information Administration, is 

16 less than $1.50 per gallon. 

17 SEC. 5. MINIMUM INVENTORY LEVELS. 

18 (a) ESTABLISHING MINIMUM LEVELS.—The Sec19 retary of Energy shall establish minimum inventory levels 

20 that producers, refiners, and marketers of crude oil and 

21 petroleum products must maintain in order to limit the 

22 impact unexpected supply disruptions have on prices at 

23 the wholesale and retail levels. 

24 (b) REGIONAL VARIATIONS.—For purposes of sub25 section (a), the minimum inventory levels shall take into 
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1 account regional variations in supply and demand, and 

2 market structure. 

3 (c) ADMINISTRATIVE PROCEDURES.—For purposes 

4 of subsection (a), the Secretary may perform the following 

5 procedures: 

6 (1) DIFFERENT INDUSTRY SEGMENTS.—Set 

7 varying levels for each segment of the oil industry as 

8 the Secretary determines appropriate. 

9 (2) DIFFERENT PRODUCTS.—Set different lev10 els for the various crude oil and petroleum products, 

11 including gasoline, home heating oil, and jet fuel. 

12 (3) SEASONAL ADJUSTMENT.—Adjust minimum 

13 inventory levels to reflect seasonal adjustments. 

14 SEC. 6. BAN ON EXPORTING OF ALASKAN OIL. 

15 (a) REPEAL OF PROVISION AUTHORIZING EX16 PORTS.—Section 28(s) of the Mineral Leasing Act (30 

17 U.S.C. 185(s)) is repealed. 

18 (b) REIMPOSITION OF PROHIBITION ON CRUDE OIL

19 EXPORTS.—Section 7(d) of the Export Administration 

20 Act of 1979 (50 U.S.C. App. 2406(d)) shall be effective 

21 as of the date of the enactment of this Act, and those 

22 provisions of the Export Administration Act of 1979 (in23 cluding sections 11 and 12) shall apply to the extent nec24 essary to carry out such section 7(d), notwithstanding sec25 tion 20 of such Act and notwithstanding any other provi-
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1 sion of law that would otherwise allow the export of oil 

2 to which such section 7(d) applies. 

3 SEC. 7. SENSE OF CONGRESS REGARDING THE ORGANIZA4 TION OF THE PETROLEUM EXPORTING COUN5 TRIES AND THE WORLD TRADE ORGANIZA6 TION. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 

9 (1) No free market exists in oil production be10 cause of collusion among large oil-producing coun11 tries. 

12 (2) The Organization of the Petroleum Export13 ing Countries (in this section referred to as 

14 ‘‘OPEC’’) and other oil-producing countries have re15 peatedly agreed to coordinated cutbacks in produc16 tion, thus manipulating world oil markets, resulting 

17 in de facto price fixing. 

18 (3) Such manipulation led to the highest price 

19 per barrel of oil in nearly a decade, substantial in20 creases in consumer prices for items such as home 

21 heating oil and gasoline, and continued price vola22 tility. 

23 (4) Rising oil prices greatly harm consumers, 

24 farmers, small businesses, and manufacturers, in25 crease the likelihood of inflation, increase the cost of 
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1 conducting interstate and international commerce, 

2 and pose a strong threat to continued economic 

3 growth. 

4 (5) Article XI of the General Agreement on 

5 Tariffs and Trade of 1994 (in this section referred 

6 to as ‘‘GATT’’) prohibits members of the World 

7 Trade Organization (in this section referred to as 

8 ‘‘WTO’’) from setting quantitative restrictions on 

9 the import or export of resources or products across 

10 their borders; specifically the language reads: ‘‘No 

11 prohibitions or restrictions other than duties, taxes 

12 or other charges, whether made effective through 

13 quotas, import or export licenses or other measures, 

14 shall be instituted or maintained by any contracting 

15 party on the importation of any product of the terri16 tory of any other contracting party or on the expor17 tation or sale for export of any product destined for 

18 the territory of any other contracting party.’’. 

19 (6) The precise meaning of such article XI was 

20 spelled out in a GATT Panel Report issued in 1988 

21 entitled ‘‘Japan—Trade in Semi-conductors’’, which 

22 notes, ‘‘. . . this wording [in article XI] was com23 prehensive: it applied to all measures instituted or 

24 maintained by a contracting party prohibiting or re25 stricting the importation, exportation, or sale for ex-
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1 port of products other than measures that take the 

2 form of duties, taxes, or other charges. . . . This 

3 wording indicated clearly that any measure insti4 tuted or maintained by a contracting party which re5 stricted the exportation or sale for export of prod6 ucts was covered by this provision, irrespective of 

7 the legal status of the measure.’’. 

8 (7) Oil production restrictions clearly qualify as 

9 a ‘‘quantitative restriction’’ based on the original 

10 WTO rules and the 1988 GATT panel report, which 

11 certify that only ‘‘duties, taxes, or other charges’’ 

12 are allowable, not pacts among countries to limit 

13 production of a product for export. 

14 (8) Article XX of GATT, which sets out a se15 ries of exceptions to article XI, notes that none of 

16 the exceptions is valid if it is ‘‘applied in a manner 

17 which would constitute . . . a disguised restriction on 

18 international trade’’, a phrase which describes pro19 duction restrictions of OPEC. 

20 (9) Of the 11 OPEC countries, six are members 

21 of the WTO (Kuwait, Indonesia, Nigeria, Qatar, 

22 Venezuela, and United Arab Emirates), two have ob23 server status and have applied to join the WTO 

24 (Saudi Arabia and Algeria), and only three have no 

25 relationship with the WTO (Libya, Iran, and Iraq). 
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1 (10) Of the remaining large oil-producing coun2 tries, Mexico, Norway, and Oman are members of 

3 the WTO, and Russia has observer status. 

4 (11) Given the substantial WTO membership 

5 and pending membership of oil-producing countries, 

6 filing a complaint would likely have an immediate 

7 impact on the current and future behavior of these 

8 countries. 

9 (b) SENSE OF CONGRESS.—Congress strongly urges 

10 the President to instruct the United States Trade Rep11 resentative to file a complaint in the World Trade Organi12 zation against oil-producing countries for violating their 

13 obligations under the rules of that organization. 

14 SEC. 8. WINDFALL PROFITS TAX. 

15 (a) WINDFALL PROFITS TAX.— 

16 (1) IN GENERAL.—Subtitle E of the Internal 

17 Revenue Code of 1986 (relating to alcohol, tobacco, 

18 and certain other excise taxes) is amended by adding 

19 at the end the following new chapter: 

20 ‘‘CHAPTER 56—WINDFALL PROFIT ON 

21 CRUDE OIL, GASOLINE, AND PROD22 UCTS THEREOF 

‘‘Sec. 5896. Imposition of tax. 
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1 ‘‘SEC. 5896. IMPOSITION OF TAX. 

2 ‘‘(a) IN GENERAL.—In addition to any other tax im3 posed under this title, there is hereby imposed an excise 

4 tax on the sale in the United States of any crude oil, gaso5 line, or other taxable product equal to the applicable per6 centage of the windfall profit on such sale. 

7 ‘‘(b) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) TAXABLE PRODUCT.—The term ‘taxable 

9 product’ means any fuel which is a product of crude 

10 oil or gasoline. 

11 ‘‘(2) WINDFALL PROFIT.—The term ‘windfall 

12 profit’ means, with respect to any sale, so much of 

13 the profit on such sale as exceeds a reasonable prof14 it. 

15 ‘‘(3) APPLICABLE PERCENTAGE.—The term 

16 ‘applicable percentage’ means— 

17 ‘‘(A) 50 percent to the extent that the 

18 profit on the sale exceeds 100 percent of the 

19 reasonable profit on the sale but does not ex20 ceed 102 percent of the reasonable profit on the 

21 sale; 

22 ‘‘(B) 75 percent to the extent that the 

23 profit on the sale exceeds 102 percent of the 

24 reasonable profit on the sale but does not ex25 ceed 105 percent of the reasonable profit on the 

26 sale; and 
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1 ‘‘(C) 100 percent to the extent that the 

2 profit on the sale exceeds 105 percent of the 

3 reasonable profit on the sale. 

4 ‘‘(4) REASONABLE PROFIT.—The term ‘reason5 able profit’ means the amount determined by the 

6 Reasonable Profits Board, established under section 

7 8(c) of the ‘Gasoline Price Stabilization Act of 

8 2005’, to be a reasonable profit on the sale. 

9 ‘‘(c) LIABILITY FOR PAYMENT OF TAX.—The taxes 

10 imposed by subsection (a) shall be paid by the seller.’’. 

11 (2) CLERICAL AMENDMENT.—The table of 

12 chapters for subtitle E of such Code is amended by 

13 adding at the end the following new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL, GASOLINE, AND PRODUCTS

THEREOF’’. 

14 (3) EFFECTIVE DATE.—The amendments made 

15 by this section shall take effect on the date that is 

16 90 days after the date of the enactment of this Act. 

17 (b) CREDIT FOR PURCHASING FUEL EFFICIENT

18 AMERICAN-MADE PASSENGER VEHICLES.— 

19 (1) IN GENERAL.—Subpart A of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code 

21 of 1986 (relating to nonrefundable personal credits) 

22 is amended by inserting after section 25B the fol23 lowing new section: 
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1 ‘‘SEC. 25C. PURCHASE OF FUEL-EFFICIENT AMERICAN2 MADE PASSENGER VEHICLES. 

3 ‘‘(a) IN GENERAL.—In the case of an individual, 

4 there shall be allowed as a credit against the tax imposed 

5 by this chapter for the taxable year an amount equal to 

6 the cost of any qualified passenger vehicle purchased by 

7 the taxpayer during the taxable year. 

8 ‘‘(b) MAXIMUM CREDIT.—The credit allowed by this 

9 section for the taxable year shall not exceed— 

10 ‘‘(1) $3,000 in the case of a qualified passenger 

11 vehicle not described in paragraph (2) or (3), 

12 ‘‘(2) $4,500 in the case of a qualified passenger 

13 vehicle the fuel economy of which is— 

14 ‘‘(A) in the case of a truck or sport utility 

15 vehicle, at least 45 miles per gallon but less 

16 than 55 miles per gallon, and 

17 ‘‘(B) in any other case, at least 55 miles 

18 per gallon but less than 65 miles per gallon, 

19 and 

20 ‘‘(3) $6,000 in the case of a qualified passenger 

21 vehicle the fuel economy of which is— 

22 ‘‘(A) in the case of a truck or sport utility 

23 vehicle, at least 55 miles per gallon, and 

24 ‘‘(B) in any other case, at least 65 miles 

25 per gallon. 
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1 ‘‘(c) QUALIFIED PASSENGER VEHICLE.—For pur2 poses of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified pas4 senger vehicle’ means any automobile (as defined in 

5 section 4064(b)(1))— 

6 ‘‘(A) which is purchased after the date of 

7 the enactment of this section, 

8 ‘‘(B) which is assembled in the United 

9 States by individuals employed under a collec10 tive bargaining agreement, 

11 ‘‘(C) the original use of which begins with 

12 the taxpayer, 

13 ‘‘(D) substantially all of the use of which 

14 is for personal, nonbusiness purposes, and 

15 ‘‘(E) the fuel economy of such automobile 

16 is— 

17 ‘‘(i) at least 35 miles per gallon in the 

18 case of a truck or sport utility vehicle, and 

19 ‘‘(ii) at least 45 miles per gallon in 

20 any other case. 

21 ‘‘(2) FUEL ECONOMY.—Fuel economy shall be 

22 determined in accordance with section 4064. 

23 ‘‘(d) SPECIAL RULES.— 

24 ‘‘(1) BASIS REDUCTION.—The basis of any 

25 property for which a credit is allowable under sub-
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1 section (a) shall be reduced by the amount of such 

2 credit. 

3 ‘‘(2) PROPERTY USED OUTSIDE UNITED STATES

4 NOT QUALIFIED.—No credit shall be allowed under 

5 subsection (a) with respect to any property referred 

6 to in section 50(b).’’. 

7 (2) CLERICAL AMENDMENT.—The table of sec8 tions for such subpart A is amended by inserting 

9 after the item relating to section 25B the following 

10 new item: 

‘‘Sec. 25C. Purchase of fuel-efficient American-made passenger vehicles.’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this section shall apply to taxable years ending 

13 after the date of the enactment of this Act. 

14 (c) REASONABLE PROFITS BOARD.— 

15 (1) ESTABLISHMENT.—There is established an 

16 independent board to be known as the ‘‘Reasonable 

17 Profits Board’’ (in this subsection referred to as the 

18 ‘‘Board’’). 

19 (2) DUTIES.—The Board shall make reasonable 

20 profit determinations for purposes of applying sec21 tion 5896 of the Internal Revenue Code of 1986, as 

22 added by subsection (a) (relating to windfall profit 

23 on crude oil, gasoline, and products thereof). 

24 (3) ADVISORY COMMITTEE.—The Board shall 

25 be considered an advisory committee within the 
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1 meaning of the Federal Advisory Committee Act (5 

2 U.S.C. App.). 

3 (4) APPOINTMENT.— 

4 (A) MEMBERS.—The Board shall be com5 posed of three members appointed by the Presi6 dent of the United States. 

7 (B) TERM.—Member of the Board shall be 

8 appointed for a term of three years. 

9 (C) VACANCIES.—Any member appointed 

10 to fill a vacancy occurring before the expiration 

11 of the term for which the predecessor of the 

12 member was appointed shall be appointed only 

13 for the remainder of that term. A member may 

14 serve after the expiration of the term of such 

15 member until a successor has taken office. A 

16 vacancy in the Board shall be filled in the man17 ner in which the original appointment was 

18 made. 

19 (5) FINANCIAL INTERESTS.— 

20 (A) PROHIBITION.—No member may have 

21 a financial interest in any of the businesses for 

22 which reasonable profits are determined by the 

23 Board. 
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1 (B) REMOVAL.—A member shall be re2 moved from the Board if the member is in vio3 lation of subparagraph (A). 

4 (6) PAY AND TRAVEL EXPENSES.— 

5 (A) PAY.—Notwithstanding section 7 of 

6 the Federal Advisory Committee Act (5 U.S.C. 

7 App.), members of the Board shall be paid at 

8 a rate equal to the daily equivalent of the min9 imum annual rate of basic pay for level IV of 

10 the Executive Schedule under section 5315 of 

11 title 5, United States Code, for each day (in12 cluding travel time) during which the member is 

13 engaged in the actual performance of duties 

14 vested in the Board. 

15 (B) TRAVEL EXPENSES.—Members shall 

16 receive travel expenses, including per diem in 

17 lieu of subsistence, in accordance with section 

18 5702 and 5703 of title 5, United States Code. 

19 (7) DIRECTOR OF STAFF.— 

20 (A) QUALIFICATIONS.—The Board shall 

21 appoint a Director who has no financial inter22 ests in any of the businesses for which reason23 able profits are determined by the Board. 

24 (B) PAY.—Notwithstanding section 7 of 

25 the Federal Advisory Committee Act (5 U.S.C. 
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1 App.), the Director shall be paid at the rate of 

2 basic pay payable for level IV of the Executive 

3 Schedule under section 5315 of title 5, United 

4 States Code. 

5 (8) STAFF.— 

6 (A) ADDITIONAL PERSONNEL.—The Direc7 tor, with the approval of the Board, may ap8 point and fix the pay of additional personnel. 

9 (B) APPOINTMENTS.—The Director may 

10 make such appointments without regard to the 

11 provisions of title 5, United States Code, gov12 erning appointments in the competitive service, 

13 and any personnel so appointed may be paid 

14 without regard to the provisions of chapter 51 

15 and subchapter III of chapter 53 of that title 

16 relating to classification and General Schedule 

17 pay rates. 

18 (C) DETAILEES.—Upon the request of the 

19 Director, the head of any Federal department 

20 or agency may detail any of the personnel of 

21 that department or agency to the Board to as22 sist the Board in accordance with an agreement 

23 entered into with the Board. 

24 (D) ASSISTANCE.—The Comptroller Gen25 eral of the United States may provide assist-
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1 ance, including the detailing of employees, to 

2 the Board in accordance with an agreement en3 tered into with the Board. 

4 (9) OTHER AUTHORITY.— 

5 (A) EXPERTS AND CONSULTANTS.—The 

6 Board may procure by contract, to the extent 

7 funds are available, the temporary or intermit8 tent services of experts or consultants pursuant 

9 to section 3109 of title 5, United States Code. 

10 (B) LEASING.—The Board may lease 

11 space and acquire personal property to the ex12 tent that funds are available. 

13 (10) FUNDING.—There are authorized to be ap14 propriated such funds as are necessary to carry out 

15 this subsection. 

16 SEC. 9. MERGER MORATORIUMS. 

17 (a) PROHIBITION ON CERTAIN MERGERS IN OIL IN18 DUSTRY.—Section 7 of the Clayton Act (15 U.S.C. 18) 

19 is amended by adding at the end the following: 

20 ‘‘No person engaged in commerce in the petroleum 

21 industry may be acquired by another person unless the 

22 acquisition is likely to result in a net benefit to consumers 

23 by maintaining or increasing competition.’’. 

24 (b) MORATORIUM ON LARGE PETROLEUM AND

25 CRUEL OIL MERGERS.— 
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1 (1) ONE-YEAR MORATORIUM.—During the one2 year period beginning on the date of the enactment 

3 of this Act and except as provided in paragraph (2), 

4 with respect to petroleum and crude oil products no 

5 explorer, producer, transporter, refiner, or wholesale 

6 distributor of such products, or operator of a retail 

7 gasoline outlet, with annual net sales or total assets 

8 of more than $10,000,000 shall merge or acquire, 

9 directly or indirectly, any voting securities or assets 

10 of any other such explorer, producer, transporter, re11 finer, distributor, or operator with annual net sales 

12 or total assets of more than $10,000,000. 

13 (2) WAIVER AUTHORITY.—The Attorney Gen14 eral may waive the moratorium imposed by 

15 paragragraph (1) only under extraordinary cir16 cumstances, such as insolvency or similar financial 

17 distress of one of the affected parties. 

18 SEC. 10. PETROLEUM INDUSTRY CONCENTRATION AND 

19 MARKET POWER REVIEW COMMISSION. 

20 (a) ESTABLISHMENT OF COMMISSION.—There is es21 tablished a commission to be known as the ‘‘Petroleum 

22 Industry Concentration and Market Power Review Com23 mission’’ (in this section referred to as the ‘‘Commis24 sion’’). 

25 (b) DUTIES OF THE COMMISSION.— 
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1 (1) STUDY ON PETROLEUM INDUSTRY.—The 

2 Commission shall study the nature, causes, and con3 sequences of concentration of ownership in the ex4 ploration, production, transportation, refinement, 

5 wholesale distribution, and retail sale of crude oil 

6 and petroleum products in the United States in the 

7 broadest possible terms. 

8 (2) ISSUES TO BE ADDRESSED.—The study 

9 shall include an examination of the following mat10 ters: 

11 (A) The nature and extent of the con12 centration described in paragraph (1). 

13 (B) Current trends in such concentration 

14 and what such industry is likely to look like in 

15 the near term and longer term future. 

16 (C) The effect of such concentration on the 

17 exploration, production, transportation, refine18 ment, wholesale distribution, and retail sale of 

19 crude oil and petroleum products. 

20 (D) The effect of such concentration on 

21 prices at the wholesale and retail levels. 

22 (E) The effect of such concentration on 

23 consumers of petroleum products, including re24 tail consumers, businesses (including fuel de-
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1 pendent industries such as aviation and truck2 ing), and farmers. 

3 (F) The relationship between current laws 

4 and administrative practices and the support 

5 and encouragement of such concentration. 

6 (G) Such related matters as the Commis7 sion determines to be important. 

8 (c) MEMBERSHIP OF COMMISSION.— 

9 (1) COMPOSITION.—The Commission shall be 

10 composed of 12 members as follows: 

11 (A) Three persons shall be appointed by 

12 the President pro tempore of the Senate upon 

13 the recommendation of the Majority Leader of 

14 the Senate, after consultation with the Chair15 man of the Committee on Energy and Natural 

16 Resources. 

17 (B) Three persons shall be appointed by 

18 the President pro tempore of the Senate upon 

19 the recommendation of the Minority Leader of 

20 the Senate, after consultation with the ranking 

21 minority member of the Committee on Energy 

22 and Natural Resources. 

23 (C) Three persons shall be appointed by 

24 the Speaker of the House of Representatives, 
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1 after consultation with the Chairman of the 

2 Committee on Energy and Commerce. 

3 (D) Three persons shall be appointed by 

4 the Minority Leader of the House of Represent5 atives, after consultation with the ranking mi6 nority member of the Committee on Energy and 

7 Commerce. 

8 (2) QUALIFICATIONS OF MEMBERS.— 

9 (A) APPOINTMENTS.—Persons who are ap10 pointed under paragraph (1) shall be persons 

11 who— 

12 (i) have expertise in petroleum eco13 nomics and antitrust, or have other perti14 nent qualifications or experience relating to 

15 petroleum industries; and 

16 (ii) are not officers or employees of 

17 the United States. 

18 (B) OTHER CONSIDERATION.—Persons 

19 who are appointed under paragraph (1) shall— 

20 (i) be representative of a broad cross 

21 sector of— 

22 (I) explorers, producers, trans23 porters, refiners, wholesale distribu24 tors, and retail sellers in the petro25 leum industry; 
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1 (II) various antitrust perspectives 

2 within the United States; and 

3 (III) consumers, fuel-dependent 

4 businesses, and other interests that 

5 the Secretary considers necessary to 

6 ensure a balanced representation of 

7 perspectives and expertise in the pe8 troleum industry; and 

9 (ii) provide fresh insights to analyzing 

10 the causes and impacts of the concentra11 tion of ownership described in subsection 

12 (b)(1). 

13 (3) PERIOD OF APPOINTMENT AND VACAN14 CIES.— 

15 (A) PERIOD OF APPOINTMENT.—Members 

16 shall be appointed not later than 60 days after 

17 the date of enactment of this Act and the ap18 pointment shall be for the life of the Commis19 sion. 

20 (B) VACANCIES.—Any vacancy in the 

21 Commission shall not affect its powers, but 

22 shall be filled in the same manner as the origi23 nal appointment. 

24 (4) MEETINGS.— 
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1 (A) IN GENERAL.—The Commission shall 

2 meet at the call of the Chairman. 

3 (B) INITIAL MEETING.—Not later than 30 

4 days after the date on which all members of the 

5 Commission have been appointed, the Commis6 sion shall hold its first meeting. 

7 (5) CHAIRMAN AND VICE CHAIRMAN.—The 

8 members of the Commission shall elect a chairman 

9 and vice chairman from among the members of the 

10 Commission. 

11 (6) QUORUM.—A majority of the members of 

12 the Commission shall constitute a quorum for the 

13 transaction of business. 

14 (d) FINAL REPORT.— 

15 (1) FINDINGS, CONCLUSION, AND REC16 OMMENDATIONS OF COMMISSION.—Not later than 

17 12 months after the date of the initial meeting of 

18 the Commission, the Commission shall submit to the 

19 President and Congress a final report that con20 tains— 

21 (A) the findings and conclusions of the 

22 study of the Commission required under sub23 section (b); and 

24 (B) recommendations for addressing any 

25 problems identified in such study. 
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1 (2) SEPARATE VIEWS.—Any member of the 

2 Commission may submit additional findings and rec3 ommendations as part of the final report. 

4 (e) POWERS OF COMMISSION.— 

5 (1) HEARINGS.—The Commission may hold 

6 such hearings, sit and act at such times and places, 

7 take such testimony, and receive such evidence as 

8 the Commission may find advisable to fulfill the re9 quirements of this section. The Commission shall 

10 hold at least one hearing in Washington, D.C., and 

11 at least four in a variety of geographic regions of the 

12 United States. 

13 (2) INFORMATION FROM FEDERAL AGENCIES.— 

14 The Commission may secure directly from any Fed15 eral department or agency such information as the 

16 Commission considers necessary to carry out the 

17 provisions of this section. Upon request of the Chair18 man of the Commission, the head of such depart19 ment or agency shall furnish such information to the 

20 Commission. 

21 (3) MAILS.—The Commission may use the 

22 United States mails in the same manner and under 

23 the same conditions as other departments and agen24 cies of the Federal Government. 

25 (f) COMMISSION PERSONNEL MATTERS.— 
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1 (1) COMPENSATION OF MEMBERS.—Each mem2 ber of the Commission shall be compensated at a 

3 rate equal to the daily equivalent of the annual rate 

4 of basic pay prescribed for level IV of the Executive 

5 Schedule under section 5315 of title 5, United 

6 States Code, for each day (including travel time) 

7 during which such member is engaged in the per8 formance of the duties of the Commission. 

9 (2) TRAVEL EXPENSES.—The members of the 

10 Commission shall be allowed travel expenses, includ11 ing per diem in lieu of subsistence, at rates author12 ized for employees of agencies under subchapter I of 

13 chapter 57 of title 5, United States Code, while 

14 away from their homes or regular places of business 

15 in the performance of duties of the Commission. 

16 (3) STAFF.— 

17 (A) IN GENERAL.—The Chairman of the 

18 Commission may, without regard to the civil 

19 service laws and regulations, appoint and termi20 nate an executive director and such other addi21 tional personnel as may be necessary to enable 

22 the Commission to perform its duties. The em23 ployment of an executive director shall be sub24 ject to confirmation by the Commission. 
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1 (B) COMPENSATION.—The Chairman of 

2 the Commission may fix the compensation of 

3 the executive director and other personnel with4 out regard to the provisions of chapter 51 and 

5 subchapter III of chapter 53 of title 5, United 

6 States Code, relating to classification of posi7 tions and General Schedule pay rates, except 

8 that the rate of pay for the executive director 

9 and other personnel may not exceed the rate 

10 payable for level V of the Executive Schedule 

11 under section 5316 of such title. 

12 (4) DETAIL OF GOVERNMENT EMPLOYEES.— 

13 Upon request of the Chairman, the head of any Fed14 eral department or agency may detail any of the per15 sonnel of that department or agency to the Commis16 sion to assist it in carrying out its duties under this 

17 section. Such detail shall be without reimbursement 

18 and without interruption or loss of civil service sta19 tus or privilege. 

20 (5) PROCUREMENT OF TEMPORARY AND INTER21 MITTENT SERVICES.—The Chairman of the Commis22 sion may procure temporary and intermittent serv23 ices under section 3109(b) of title 5, United States 

24 Code, at rates for individuals which do not exceed 

25 the daily equivalent of the annual rate of basic pay 
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1 prescribed for level V of the Executive Schedule 

2 under section 5316 of such title. 

3 (g) SUPPORT SERVICES.—The Administrator of Gen4 eral Services shall provide to the Commission on a reim5 bursable basis such administrative support services as the 

6 Commission may request. 

7 (h) AUTHORIZATION FOR APPROPRIATIONS.—There 

8 is authorized to be appropriated $2,000,000 to carry out 

9 the provisions of this section. 

10 SEC. 11. INCREASED AVERAGE FUEL ECONOMY STAND11 ARDS FOR PASSENGER AUTOMOBILES AND 

12 LIGHT TRUCKS. 

13 (a) DEFINITION OF LIGHT TRUCK.—Section 

14 32901(a) of title 49, United States Code, is amended by 

15 adding at the end the following: 

16 ‘‘(17) ‘light truck’ has the meaning given that 

17 term in regulations prescribed by the Secretary of 

18 Transportation in the administration of this chap19 ter.’’. 

20 (b) INCREASED STANDARDS.—Section 32902 of such 

21 title is amended— 

22 (1) in subsection (a)— 

23 (A) by striking ‘‘NON-PASSENGER AUTO24 MOBILES—’’ and inserting ‘‘PRESCRIPTION OF

25 STANDARDS BY REGULATION—’’; and 
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1 (B) by striking ‘‘(except passenger auto2 mobiles)’’ and inserting ‘‘(except passenger 

3 automobiles and light trucks)’’; and 

4 (2) by amending subsection (b) to read as fol5 lows: 

6 ‘‘(b) PASSENGER AUTOMOBILES AND LIGHT

7 TRUCKS.— 

8 ‘‘(1) PASSENGER AUTOMOBILES.—The average 

9 fuel economy standard for passenger automobiles 

10 manufactured by a manufacturer in a model year 

11 after model year 2014 shall be 45.0 miles per gallon. 

12 ‘‘(2) LIGHT TRUCKS.—The average fuel econ13 omy standard for light trucks manufactured by a 

14 manufacturer in a model year after model year 2014 

15 shall be 34.0 miles per gallon.’’. 

16 (c) CONFORMING AMENDMENTS.—Such section is 

17 amended in subsection (c)— 

18 (1) in paragraph (1), by striking ‘‘the stand19 ard’’ and inserting ‘‘a standard’’; and 

20 (2) in paragraph (2), by striking ‘‘increases the 

21 standard above 27.5 miles per gallon, or decreases 

22 the standard below 26.0 miles per gallon’’ and in23 serting ‘‘increases the standard above 45.0 miles per 

24 gallon or decreases the standard below 43.5 miles 

25 per gallon in the case of passenger automobiles, or 
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1 increases the standard above 34.0 miles per gallon 

2 or decreases the standard below 32.5 miles per gal3 lon in the case of light trucks,’’. 

4 (d) APPLICABILITY OF EXISTING STANDARDS.—This 

5 section does not affect the application of section 32902 

6 of title 49, United States Code, to passenger automobiles 

7 and light trucks manufactured before model year 2015. 

8 SEC. 12. FUEL ECONOMY OF THE FEDERAL FLEET OF VEHI9 CLES. 

10 (a) BASELINE AVERAGE FUEL ECONOMY.—The head 

11 of each executive agency shall determine, for each class 

12 of vehicles that are in the agency’s fleet of vehicles in fiscal 

13 year 2007, the average fuel economy for all of the vehicles 

14 in that class that are in the agency’s fleet of vehicles for 

15 that fiscal year. For the purposes of this section, the aver16 age fuel economy so determined for the agency’s vehicles 

17 in a class of vehicles shall be the baseline average fuel 

18 economy for the agency’s fleet of vehicles in that class. 

19 (b) INCREASE OF AVERAGE FUEL ECONOMY.—The 

20 head of an executive agency shall manage the procurement 

21 of vehicles in each class of vehicles for that agency in such 

22 a manner that— 

23 (1) not later than September 30, 2009, the av24 erage fuel economy of the new vehicles in the agen25 cy’s fleet of vehicles in each class of vehicles is not 
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1 less than three miles per gallon higher than the 

2 baseline average fuel economy determined for that 

3 class; and 

4 (2) not later than September 30, 2012, the av5 erage fuel economy of the new vehicles in the agen6 cy’s fleet of vehicles in each class of vehicles is not 

7 less than six miles per gallon higher than the base8 line average fuel economy determined for that class. 

9 (c) CALCULATION OF AVERAGE FUEL ECONOMY.— 

10 Average fuel economy shall be calculated for the purposes 

11 of this section in accordance with guidance which the Sec12 retary of Transportation shall prescribe for the implemen13 tation of this section. 

14 (d) DEFINITIONS.— 

15 (1) The term ‘‘class of vehicles’’ means a class 

16 of vehicles for which an average fuel economy stand17 ard is in effect under chapter 329 of title 49, United 

18 States Code. 

19 (2) The term ‘‘executive agency’’ has the mean20 ing given the term in section 4(1) of the Office of 

21 Federal Procurement Policy Act (41 U.S.C. 403(1)). 

22 (3) The term ‘‘new vehicle’’, with respect to the 

23 fleet of vehicles of an executive agency, means a ve-
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1 hicle procured by or for the agency after September 

2 30, 2008. 

Æ