49–006 

109TH CONGRESS REPT. 109–244 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

GASOLINE FOR AMERICA’S SECURITY ACT OF 2005 

OCTOBER 6, 2005.—Ordered to be printed 

Mr. BARTON of Texas, from the Committee on Energy and 

Commerce, submitted the following 

R E P O R T 

together with 

ADDITIONAL AND DISSENTING VIEWS 

[To accompany H.R. 3893] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 3893) to expedite the construction of new refining capacity in the United States, to provide reliable and affordable energy for the American people, and for other purposes, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 19 

Background and Need for Legislation .................................................................... 20 

Hearings ................................................................................................................... 22 

Committee Consideration ........................................................................................ 22 

Committee Votes ...................................................................................................... 22 

Committee Oversight Findings ............................................................................... 35 

Statement of General Performance Goals and Objectives .................................... 35 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 35 

Committee Cost Estimate ....................................................................................... 35 

Congressional Budget Office Estimate ................................................................... 35 

Federal Mandates Statement ................................................................................. 42 

Advisory Committee Statement .............................................................................. 42 

Constitutional Authority Statement ...................................................................... 42 

Applicability to Legislative Branch ........................................................................ 42 

Section-by-Section Analysis of the Legislation ...................................................... 42 

Changes in Existing Law Made by the Bill, as Reported ..................................... 54 

Dissenting and Additional Views............................................................................ 66, 67 

Exchange of Committee Correspondence ............................................................... 72 

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AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Gasoline for America’s Security 

Act of 2005’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—INCREASING REFINERY CAPACITY 

Sec. 101. State participation and presidential designation. 

Sec. 102. Process coordination and rules of procedure. 

Sec. 103. Refinery revitalization repeal. 

Sec. 104. Standby support for refineries. 

Sec. 105. Military use refinery. 

Sec. 106. New source review under Clean Air Act. 

Sec. 107. Waiver authority for extreme fuel supply emergencies. 

Sec. 108. List of fuel blends. 

Sec. 109. Attainment dates for downwind ozone nonattainment areas. 

Sec. 110. Northwest crude oil supply. 

Sec. 111. Discounted sales of royalty-in-kind oil to qualified small refineries. 

Sec. 112. Study and report relating to streamlining paperwork requirements. 

Sec. 113. Response to biomass debris emergency. 

TITLE II—INCREASING DELIVERY INFRASTRUCTURE 

Sec. 201. Federal-State regulatory coordination. 

Sec. 202. Process coordination and rules of procedure. 

Sec. 203. Backup power capacity study. 

Sec. 204. Sunset of loan guarantees. 

Sec. 205. Offshore pipelines. 

Sec. 206. Savings clause. 

Sec. 207. Carbon-based fuel cell development. 

TITLE III—CONSERVATION AND EDUCATION 

Sec. 301. Department of Energy carpooling and vanpooling program. 

Sec. 302. Evaluation and assessment of carpool and vanpool projects. 

Sec. 303. Internet utilization study. 

Sec. 304. Fuel consumption education campaign. 

Sec. 305. Procurement of energy efficient lighting devices. 

Sec. 306. Minority employment. 

TITLE IV—GASOLINE PRICE REFORM 

Sec. 401. Short title. 

Sec. 402. Gasoline price gouging prohibited. 

Sec. 403. FTC investigation on price-gouging. 

Sec. 404. FTC study of petroleum prices on exchange. 

TITLE V—STRATEGIC PETROLEUM RESERVE 

Sec. 501. Strategic Petroleum Reserve capacity. 

Sec. 502. Strategic Petroleum Reserve sale. 

Sec. 503. Northeast Home Heating Oil Reserve capacity. 

TITLE VI—COMMISSION FOR THE DEPLOYMENT OF THE HYDROGEN ECONOMY 

Sec. 601. Establishment. 

Sec. 602. Duties of Commission. 

Sec. 603. Membership. 

Sec. 604. Staff of Commission; experts and consultants. 

Sec. 605. Powers of Commission. 

Sec. 606. Report. 

TITLE VII—CRITICAL ENERGY ASSURANCE 

Sec. 701. Evacuation plan review. 

Sec. 702. Disaster assistance. 

Sec. 703. Critical Energy Assurance Account. 

Sec. 704. Regulations. 

SEC. 2. FINDINGS. 

The Congress makes the following findings: 

(1) No new refinery has been constructed in the United States since 1976. 

There are 148 operating refineries in the United States, down from 324 in 1981. 

Refined petroleum product imports are currently projected to grow from 7.9 percent to 10.7 percent of total refined product by 2025 to satisfy increasing demand. 

(2) While the number of American refineries in operation has reduced over 

the last 20 years, much of the resulting lost capacity has been replaced by gains 

from more efficient refineries. 

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(3) Hurricanes Katrina and Rita substantially disrupted petroleum production, refining, and pipeline systems in the Gulf Coast region, affecting energy 

prices and supply nationwide. In the immediate aftermath of Katrina alone, 

United States refining capacity was reduced by more than 2,000,000 barrels per 

day. However, before Hurricanes Katrina and Rita, United States refining capacity was already significantly strained by increased levels of production, with 

industry average utilization rates of 95 percent of capacity or higher. 

(4) It serves the national interest to increase refinery capacity for gasoline, 

heating oil, diesel fuel, and jet fuel wherever located within the United States, 

to bring more reliable and economic supply to the American people. 

(5) According to economic analysis, households are conservatively estimated to spend an average of $1,948 this year on gasoline, up 45 percent from 3 years 

ago, and households with incomes under $15,000 (1⁄5 of all households) this year 

will spend, on average, more than 1⁄10 of their income just on gasoline. 

(6) According to economic analysis, rural American households will spend $2,087 on gasoline this year. Rural Americans are paying an estimated 22 percent more for gasoline than their urban counterparts because they must drive 

longer distances. 

(7) A growing reliance on foreign sources of refined petroleum products impairs our national security interests and global competitiveness. 

(8) Refiners are subject to significant environmental and other regulations 

and face several new Clean Air Act requirements over the next decade. New 

Clean Air Act requirements will benefit the environment but will also require 

substantial capital investment and additional government permits. These new 

requirements increase business uncertainty and dissuade investment in new refinery capacity. 

(9) There is currently a lack of coordination in permitting requirements and 

other regulations affecting refineries at the Federal, State, and local levels. 

There is no consistent national permitting program for refineries, compared 

with the Federal Energy Regulatory Commission’s lead agency role over interstate natural gas pipelines, liquefied natural gas, and hydroelectric power and 

the Nuclear Regulatory Commission’s role over nuclear plant licensing. More 

regulatory certainty and coordination is needed for refinery owners to stimulate 

investment in increased refinery capacity. 

SEC. 3. DEFINITIONS. 

For purposes of this Act— 

(1) the term ‘‘Administrator’’ means the Administrator of the Environmental 

Protection Agency; 

(2) the term ‘‘refinery’’ means— 

(A) a facility designed and operated to receive, load, unload, store, transport, process, and refine crude oil by any chemical or physical process, including distillation, fluid catalytic cracking, hydrocracking, coking, 

alkylation, etherification, polymerization, catalytic reforming, isomerization, 

hydrotreating, blending, and any combination thereof, in order to produce 

gasoline or other fuel; or 

(B) a facility designed and operated to receive, load, unload, store, transport, process, and refine coal by any chemical or physical process, including 

liquefaction, in order to produce gasoline, diesel, or other liquid fuel as its 

primary output; and 

(3) the term ‘‘Secretary’’ means the Secretary of Energy. 

TITLE I—INCREASING REFINERY CAPACITY 

SEC. 101. STATE PARTICIPATION AND PRESIDENTIAL DESIGNATION. 

(a) FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.— 

(1) GOVERNOR’S REQUEST.—The governor of a State may submit a request to 

the Secretary for the application of process coordination and rules of procedure 

under section 102 to the siting, construction, expansion, or operation of any refinery in that State. 

(2) STATE ASSISTANCE.—The Secretary and the Administrator are authorized 

to provide financial assistance to State governments to facilitate the hiring of 

additional personnel with expertise in fields relevant to consideration of applications to site, construct, expand, or operate any refinery in that State. 

(3) OTHER ASSISTANCE.—The Secretary and the Administrator shall provide 

technical, legal, or other assistance to State governments to facilitate their review of applications to site, construct, expand, or operate any refinery in that 

State. 

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(b) PRESIDENTIAL DESIGNATION.—

(1) REQUIREMENT.—Not later than 90 days after the date of enactment of this 

Act, the President shall designate sites on Federal lands, including closed military installations, that are appropriate for the purposes of siting a refinery. Any 

such designation may be based on an analysis of—

(A) the availability of crude oil supplies to the site, including supplies 

from domestic production of shale oil and tar sands and other strategic unconventional fuels; 

(B) the distribution of the Nation’s refined petroleum product demand; 

(C) whether such sites are in close proximity to substantial pipeline infrastructure, including both crude oil and refined petroleum product pipelines, 

and potential infrastructure feasibility; 

(D) the need to diversify the geographical location of the Nation’s domestic refining capacity; 

(E) the effect that increased refined petroleum products from a refinery 

on that site may have on the price and supply of gasoline to consumers; 

(F) national defense; and 

(G) such other factors as the President considers appropriate. 

(2) MILITARY INSTALLATIONS.—

(A) DESIGNATION.—Among the sites designated pursuant to this subsection, the President shall designate no less than 3 closed military installations, or portions thereof, as suitable for the construction of a refinery. 

Except as provided in subparagraph (B), until the expiration of 2 years 

after the date of enactment of this Act, the Federal Government shall not 

sell or otherwise dispose of the military installations designated pursuant 

to this subsection. 

(B) GOVERNOR’S OBJECTION.—No site may be used for a refinery under 

this title if, not later than 60 days after designation of the site under subparagraph (A), the Governor of the State in which the site is located transmits to the President an objection to the designation, unless, not later than 

60 days after the President receives such objection, the Congress has by law 

overridden the objection. 

(c) LEASE OF SITES.—The Federal Government shall offer for lease, or select under 

section 105(a), any site designated by the President under subsection (b), consistent 

with procedures for the disposition of such site under applicable Federal property 

laws. Notwithstanding any provision of such Federal property laws providing for the 

disposition or reuse of the site, a lease under this subsection, or selection under section 105(a), shall be deemed to be the appropriate disposition of the site. A site shall 

not be leased under this subsection except for the purpose of construction of a refinery. 

(d) APPLICABILITY.—Section 102 shall only apply to refineries sited or proposed to 

be sited or expanded or proposed to be expanded—

(1) in a State whose governor has requested applicability of such section pursuant to subsection (a) of this section; or 

(2) on a site designated by the President under subsection (b) of this section. 

(e) DEFINITION.—For purposes of this section—

(1) the term ‘‘closed military installations’’ means facilities closed pursuant to 

a base closure law (as defined in section 101(a)(17) of title 10, United States 

Code) and facilities identified for closure in 2005 and included on the list of installations forwarded by the President to Congress on September 15, 2005, pursuant to a base closure law; 

(2) the term ‘‘Federal lands’’ means all land owned by the United States, except that such term does not include land—

(A) within the National Park System; 

(B) within the National Wilderness Preservation System; and 

(C) designated as a National Monument; and 

(3) the term ‘‘State’’ means a State, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United 

States. 

SEC. 102. PROCESS COORDINATION AND RULES OF PROCEDURE. 

(a) DEFINITION.—For purposes of this section and section 105, the term ‘‘Federal 

refinery authorization’’—

(1) means any authorization required under Federal law, whether administered by a Federal or State administrative agency or official, with respect to 

siting, construction, expansion, or operation of a refinery; and 

(2) includes any permits, special use authorizations, certifications, opinions, 

or other approvals required under Federal law with respect to siting, construction, expansion, or operation of a refinery. 

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(b) DESIGNATION AS LEAD AGENCY.—

(1) IN GENERAL.—The Department of Energy shall act as the lead agency for 

the purposes of coordinating all applicable Federal refinery authorizations and 

related environmental reviews with respect to a refinery. 

(2) OTHER AGENCIES.—Each Federal and State agency or official required to 

provide a Federal refinery authorization shall cooperate with the Secretary and 

comply with the deadlines established by the Secretary. 

(c) SCHEDULE.—

(1) SECRETARY’S AUTHORITY TO SET SCHEDULE.—The Secretary shall establish 

a schedule for all Federal refinery authorizations with respect to a refinery. In 

establishing the schedule, the Secretary shall—

(A) ensure expeditious completion of all such proceedings; and 

(B) accommodate the applicable schedules established by Federal law for 

such proceedings. 

(2) FAILURE TO MEET SCHEDULE.—If a Federal or State administrative agency 

or official does not complete a proceeding for an approval that is required for 

a Federal refinery authorization in accordance with the schedule established by 

the Secretary under this subsection, the applicant may pursue remedies under 

subsection (e). 

(d) CONSOLIDATED RECORD.—The Secretary shall, with the cooperation of Federal 

and State administrative agencies and officials, maintain a complete consolidated 

record of all decisions made or actions taken by the Secretary or by a Federal administrative agency or officer (or State administrative agency or officer acting under 

delegated Federal authority) with respect to any Federal refinery authorization. 

Such record shall be the record for judicial review under subsection (e) of decisions 

made or actions taken by Federal and State administrative agencies and officials, 

except that, if the Court determines that the record does not contain sufficient information, the Court may remand the proceeding to the Secretary for further development of the consolidated record. 

(e) JUDICIAL REVIEW.—

(1) IN GENERAL.—The United States Court of Appeals for the District of Columbia shall have original and exclusive jurisdiction over any civil action for the 

review of—

(A) an order or action, related to a Federal refinery authorization, by a 

Federal or State administrative agency or official; and 

(B) an alleged failure to act by a Federal or State administrative agency 

or official acting pursuant to a Federal refinery authorization. 

The failure of an agency or official to act on a Federal refinery authorization 

in accordance with the Secretary’s schedule established pursuant to subsection 

(c) shall be considered inconsistent with Federal law for the purposes of paragraph (2) of this subsection. 

(2) COURT ACTION.—If the Court finds that an order or action described in 

paragraph (1)(A) is inconsistent with the Federal law governing such Federal 

refinery authorization, or that a failure to act as described in paragraph (1)(B) 

has occurred, and the order, action, or failure to act would prevent the siting, 

construction, expansion, or operation of the refinery, the Court shall remand the 

proceeding to the agency or official to take appropriate action consistent with 

the order of the Court. If the Court remands the order, action, or failure to act 

to the Federal or State administrative agency or official, the Court shall set a 

reasonable schedule and deadline for the agency or official to act on remand. 

(3) SECRETARY’S ACTION.—For any civil action brought under this subsection, 

the Secretary shall promptly file with the Court the consolidated record compiled by the Secretary pursuant to subsection (d). 

(4) EXPEDITED REVIEW.—The Court shall set any civil action brought under 

this subsection for expedited consideration. 

(5) ATTORNEY’S FEES.—In any action challenging a Federal refinery authorization that has been granted, reasonable attorney’s fees and other expenses of litigation shall be awarded to the prevailing party. This paragraph shall not apply 

to any action seeking remedies for denial of a Federal refinery authorization or 

failure to act on an application for a Federal refinery authorization. 

SEC. 103. REFINERY REVITALIZATION REPEAL. 

Subtitle H of title III of the Energy Policy Act of 2005 and the items relating 

thereto in the table of contents of such Act are repealed. 

SEC. 104. STANDBY SUPPORT FOR REFINERIES. 

(a) DEFINITION.—For purposes of this section, the term ‘‘authorization’’ means any 

authorization or permit required under State or Federal law. 

(b) CONTRACT AUTHORITY.—

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(1) IN GENERAL.—The Secretary may enter into contracts under this section 

with non-Federal entities that the Secretary determines, at the sole discretion 

of the Secretary, to be the first non-Federal entities to enter into firm contracts 

after the date of enactment of this Act to construct new refineries in the United 

States or refurbish and return to commercial operation existing but nonoperating refineries in the United States. The Secretary may enter into contracts 

under this section with respect to new refineries or refurbished refineries that 

add a total of no more than 2,000,000 barrels per day of refining capacity to 

the refining capacity of the United States as in existence on the date of enactment of this Act. 

(2) CONDITIONS.—Except as provided in paragraphs (4) and (5), under a contract authorized under paragraph (1), the Secretary shall pay to the non-Federal entity the costs specified in paragraph (3), using funds deposited in the 

Standby Refinery Support Account established under subsection (c), if— (A) the non-Federal entity has substantially completed construction of the 

new refinery or the refurbished refinery and the initial commercial operation of the new refinery or of the refurbished refinery is delayed because 

of— (i) litigation that could not have been reasonably foreseen by the nonFederal entity at the time the non-Federal entity entered into the firm 

contract to construct; or 

(ii) a failure of an agency of the Federal Government or of a State 

government to grant an authorization within a period specified in the 

contract authorized by this section; or 

(B) the throughput level of commercial operation of the new or refurbished refinery is substantially reduced due to—

(i) State or Federal law or regulations enacted or implemented after 

the firm contract was entered into; or 

(ii) litigation, that could not have been reasonably foreseen by the 

non-Federal entity, disputing actions taken by the non-Federal entity 

to conform with and satisfy Federal law or regulations enacted or implemented after the firm contract was entered into. 

(3) COVERED COSTS.—Under a contract authorized under this section, the Secretary shall pay—

(A) in the case of a delay described in paragraph (2)(A), all costs of the 

delay in the initial commercial operation of a new refining or a refurbished 

refinery, including the principal or interest due on any debt obligation of 

the new refinery or of the refurbished refinery during the delay, and any 

consequential damages; and 

(B) in the case of a substantial reduction described in paragraph (2)(B), 

all costs necessary to offset the costs of the reduced throughput and the 

costs of complying with the new State or Federal law or regulations. 

(4) COSTS NOT COVERED.—The Secretary shall not enter into a contract under 

this section that would obligate the Secretary to pay any costs resulting from—

(A) except as provided in paragraph (3)(B), a failure of the non-Federal 

entity to take any action required by law or regulation; or 

(B) events within the control of the non-Federal entity. 

(5) DEPOSIT.—The Secretary shall not enter into a contract authorized under 

this section until the Secretary has deposited into the Standby Refinery Support 

Account amounts sufficient to cover the costs specified in paragraph (3). 

(c) STANDBY REFINERY SUPPORT ACCOUNT.—There is established in the Treasury 

an account known as the Standby Refinery Support Account. The Secretary shall 

deposit into this account amounts appropriated, in advance of entering into a contract authorized by this section, to the Secretary for the purpose of carrying out this 

section and payments paid to the Secretary by any non-Federal source for the purpose of carrying out this section. The Secretary may receive and accept payments 

from any non-Federal source, which shall be made available without further appropriation for the payment of the covered costs. 

(d) REGULATIONS.—The Secretary may issue regulations necessary or appropriate 

to carry out this section. 

(e) REPORTS.—The Secretary shall file with Congress annually a report of the Secretary’s activities under this section and the activities of the non-Federal entity 

under any contract entered into under this section. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

to the Secretary such sums as are necessary to carry out this section. 

(g) APPLICABILITY.—This section shall only apply to refineries sited or proposed 

to be sited—

(1) in a State whose governor has requested applicability of this section pursuant to section 101(a)(1); or 

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(2) on a site designated by the President under section 101(b). 

SEC. 105. MILITARY USE REFINERY. 

(a) AUTHORIZATION.—If the President determines that there is not sufficient refining capacity in the United States, the President, to the extent provided in advance 

in appropriations Acts, may authorize the design and construction of and select an 

appropriate site for, a refinery for the exclusive purpose of manufacturing petroleum 

products for consumption by the Armed Forces of the United States. A refinery constructed under this section shall be located at a site designated by the President 

under section 101(b). Such site shall be leased, for its fair market value, to the applicant selected to operate the refinery pursuant to subsection (b). 

(b) SOLICITATION FOR DESIGN, CONSTRUCTION, AND OPERATION.—The President 

shall solicit proposals for the design, construction, and operation of a refinery under 

this section. In selecting a proposal or proposals under this subsection, the President 

shall consider—

(1) the ability of the applicant to undertake and complete the project; 

(2) the extent to which the applicant’s proposal serves the purposes of the 

project; and 

(3) the ability of the applicant to best satisfy the criteria set forth in subsection (c). 

(c) REFINERY CRITERIA.—A refinery constructed under this section shall meet or 

exceed the industry average for—

(1) construction efficiencies; and 

(2) operational efficiencies, including cost efficiencies. 

(d) USE OF PRODUCTS.—All petroleum products manufactured at a refinery constructed under this section shall be sold to the Federal Government at a price not 

to exceed their fair market value for use by the Armed Forces of the United States. 

SEC. 106. NEW SOURCE REVIEW UNDER CLEAN AIR ACT. 

(a) RULEMAKING.—Considering the devastation brought about by the recent natural disasters, and the adverse impact of such disasters on the United States energy 

markets, including both the availability and the price of energy, the Administrator 

shall initiate a rulemaking, issue guidance, and take all other appropriate steps to 

reform, as expeditiously as practicable, the New Source Review programs under title 

I, parts C and D of the Clean Air Act. Taking into account the urgent need to increase the efficiency and availability and to improve the reliability of the energy 

supply to consumers and industrial sources, and to secure a decrease in energy 

prices, the Administrator, in undertaking these reform efforts, shall utilize and 

draw upon the maximum legal flexibility available under existing law, in order to 

enable energy industry facilities, including, but not limited to, refineries, electric 

power generating stations, and compressor stations, to undertake without hindrance, promptly and in the least-cost manner, projects to maintain, to restore, and 

to improve the efficiency, the reliability, or the availability of such facilities. 

(b) DEFINITION.—Section 302 of the Clean Air Act (42 U.S.C. 7602) is amended 

by adding the following new subsection at the end thereof: 

‘‘(aa) PHYSICAL CHANGE, OR CHANGE IN THE METHOD OF OPERATION OF EXISTING

EMISSIONS UNIT.—For purposes of parts C and D of this title, the term ‘physical 

change, or change in the method of operation of,’ as applied to an existing emissions 

unit, means a ‘modification’ as defined in paragraphs (a), (b), (c), (e), and (h) of title 

40 of the Code of Federal Regulations, section 60.14 (as in effect on September 22, 

2005), except that paragraph (h) shall apply to all industrial categories and paragraph (e)(1) shall include all repairs and replacements covered by section 51.166(y) 

of title 40 of the Code of Federal Regulations (as in effect on December 31, 2004).’’. 

SEC. 107. WAIVER AUTHORITY FOR EXTREME FUEL SUPPLY EMERGENCIES. 

Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545) is amended—

(1) by redesignating the second clause (v) as clause (viii); 

(2) by redesignating clause (v) as clause (vii); 

(3) by inserting after clause (iv) the following: 

‘‘(v)(I) For the purpose of alleviating an extreme and unusual fuel or fuel additive 

supply emergency resulting from a natural disaster, the President, in consultation 

with the Administrator and the Secretary of Energy—

‘‘(aa) may temporarily waive any control or prohibition respecting the use of 

a fuel or fuel additive required by this section; and 

‘‘(bb) may preempt and temporarily waive any related or equivalent control 

or prohibition respecting the use of a fuel or fuel additive prescribed by a State 

or local statute or regulation, including any such requirement in a State implementation plan. 

‘‘(II) The effective period of a waiver under this clause shall be the time period 

necessary to permit the correction of the extreme and unusual fuel or fuel additive 

8 

supply emergency caused by the natural disaster, except that such period shall not 

be longer than 90 days. 

‘‘(III) A temporary waiver issued under this clause shall not permit an alteration 

of the properties of the fuel to the extent that the use of the fuel prevents the normal functioning of the vehicle, engine, component, system, or equipment in which 

the fuel is used or would materially degrade such functioning over the useful life 

of the vehicle, engine, component, system, or equipment.’’; and 

(4) by inserting after clause (v) (as inserted by paragraph (3)) the following: 

‘‘(vi) A State shall not be subject to any finding, disapproval, or determination by 

the Administrator under section 179, no person may bring an action against a State 

or the Administrator under section 304, and the Administrator shall not take any 

action under section 110(c) to require the revision of an applicable implementation 

plan, because of any emissions attributable to a waiver granted by the Administrator under clause (ii) or by the President under clause (v).’’. 

SEC. 108. LIST OF FUEL BLENDS. 

(a) LIST OF BLENDS.—Section 211(c)(4)(C)(viii) of the Clean Air Act (42 U.S.C. 

7545(c)(4)(C)(viii)), as so redesignated by section 107(1) of this Act, is amended—

(1) by striking subclauses (I) through (V); 

(2) by redesignating subclause (VI) as subclause (V); and 

(3) by inserting the following before subclause (V), as so redesignated by paragraph (2) of this subsection: 

‘‘(I) The Administrator, in coordination with the Secretary of Energy (hereinafter 

in this clause referred to as the ‘Secretary’), shall identify and publish in the Federal Register, within 12 months after the enactment of this subclause and after notice and opportunity for public comment, a list of 6 gasoline and diesel fuel blends 

to be used in States that have not received a waiver under section 209(b) of this 

Act or any State dependent on refineries in such State for gasoline or diesel fuel 

supplies. The list shall be referred to as the ‘Federal Fuels List’ and shall include 

one Federal diesel fuel, one alternative diesel fuel blend approved under this subparagraph before enactment of this subclause, one conventional gasoline for ozone 

attainment areas, one reformulated gasoline (RFG) meeting the requirements of 

subsection (k), and 2 additional gasoline blends with Reid vapor pressure (RVP) controls for use in ozone nonattainment areas of varying degrees of severity. None of 

the fuel blends identified under this subclause shall control fuel sulfur or toxics levels beyond levels required by regulations of the Administrator. 

‘‘(II) Gasoline and diesel fuel blends shall be included on the Federal Fuels List 

based on the Administrator’s analysis of their ability to reduce ozone emissions to 

assist States in attaining established ozone standards under this Act, and on an 

analysis by the Secretary that the adoption of the Federal Fuels List will not result 

in a reduction in supply or in producibility, including that caused by a reduction 

in domestic refining capacity triggered by this clause. In the event the Secretary 

concludes that adoption of the Federal Fuels List will result in a reduction in supply 

or in producibility, the Administrator and the Secretary shall report that conclusion 

to Congress, and suspend implementation of this clause. The Administrator and the 

Secretary shall conduct the study required under section 1541(c) of the Energy Policy Act of 2005 on the timetable required in that section to provide Congress with 

legislative recommendations for modifications to the proposed Federal Fuels List 

only if the Secretary concludes that adoption of the Federal Fuels List will result 

in a reduction in supply or in producibility. 

‘‘(III) Upon publication of the Federal Fuels List, the Administrator shall have no 

authority, when considering a State implementation plan or State implementation 

plan revision, to approve under this subparagraph any fuel included in such plan 

or plan revision if the fuel proposed is not one of the fuels included on the Federal 

Fuels List; or to approve such plan or revision unless, after consultation with the 

Secretary, the Administrator publishes in the Federal Register, after notice and opportunity for public comment, a finding that, in the Administrator’s judgment, such 

revisions to newly adopt one of the fuels included on the Federal Fuels List will not 

cause fuel supply or distribution interruptions or have a significant adverse impact 

on fuel producibility in the affected area or contiguous area. The Administrator’s 

findings shall include an assessment of reasonably foreseeable supply distribution 

emergencies that could occur in the affected area or contiguous area and how adoption of the particular fuel revision would effect supply opportunities during reasonably foreseeable supply distribution emergencies. 

‘‘(IV) The Administrator, in consultation with the Secretary, shall develop a plan 

to harmonize the currently approved fuel blends in State implementation plans with 

the blends included on the Federal Fuels List and shall promulgate implementing 

regulations for this plan not later than 18 months after enactment of this subclause. 

9 

This harmonization shall be fully implemented by the States by December 31, 

2008.’’. 

(b) STUDY.—Section 1541(c)(2) of the Energy Policy Act of 2005 is amended to read 

as follows: 

‘‘(2) FOCUS OF STUDY.—The primary focus of the study required under paragraph (1) shall be to determine how to develop a Federal fuels system that 

maximizes motor fuel fungibility and supply, preserves air quality standards, 

and reduces motor fuel price volatility that results from the proliferation of boutique fuels, and to recommend to Congress such legislative changes as are necessary to implement such a system. The study should include the impacts on 

overall energy supply, distribution, and use as a result of the legislative 

changes recommended. The study should include an analysis of the impact on 

ozone emissions and supply of a mandatory reduction in the number of fuel 

blends to 6, including one Federal diesel fuel, one alternative diesel fuel blend, 

one conventional gasoline for ozone attainment areas, one reformulated gasoline 

(RFG) meeting the requirements of subsection (k), and 2 additional gasoline 

blends with Reid vapor pressure (RVP) controls for use in ozone nonattainment 

areas of varying degrees of severity. ’’. 

SEC. 109. ATTAINMENT DATES FOR DOWNWIND OZONE NONATTAINMENT AREAS. 

Section 181 of the Clean Air Act (42 U.S.C. 7511) is amended by adding the following new subsection at the end thereof: 

‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN DOWNWIND AREAS.—

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) The term ‘upwind area’ means an area that—

‘‘(i) affects nonattainment in another area, hereinafter referred to as 

a downwind area; and 

‘‘(ii) is either—

‘‘(I) a nonattainment area with a later attainment date than the 

downwind area, or 

‘‘(II) an area in another State that the Administrator has found 

to be significantly contributing to nonattainment in the downwind 

area in violation of section 110(a)(2)(D) and for which the Administrator has established requirements through notice and comment 

rulemaking to eliminate the emissions causing such significant contribution. 

‘‘(B) The term ‘current classification’ means the classification of a downwind area under this section at the time of the determination under paragraph (2). 

‘‘(2) EXTENSION.—Notwithstanding the provisions of subsection (b)(2) of this 

section, a downwind area that is not in attainment within 18 months of the attainment deadline required under this section may seek an extension of time 

to come into attainment by petitioning the Administrator for such an extension. 

If the Administrator—

‘‘(A) determines that any area is a downwind area with respect to a particular national ambient air quality standard for ozone; 

‘‘(B) approves a plan revision for such area as provided in paragraph (3) 

prior to a reclassification under subsection (b)(2)(A); and 

‘‘(C) determines that the petitioning downwind area has demonstrated 

that it is affected by transport from an upwind area to a degree that affects 

the area’s ability to attain, 

the Administrator, in lieu of such reclassification, may extend the attainment 

date for such downwind area for such standard in accordance with paragraph 

(5). 

‘‘(3) APPROVAL.—In order to extend the attainment date for a downwind area 

under this subsection, the Administrator may approve a revision of the applicable implementation plan for the downwind area for such standard that—

‘‘(A) complies with all requirements of this Act applicable under the current classification of the downwind area, including any requirements applicable to the area under section 172(c) for such standard; 

‘‘(B) includes any additional measures needed to demonstrate attainment 

by the extended attainment date provided under this subsection, and provides for implementation of those measures as expeditiously as practicable; 

and 

‘‘(C) provides appropriate measures to ensure that no area downwind of 

the area receiving the extended attainment date will be affected by transport to a degree that affects the area’s ability to attain, from the area receiving the extension. 

10 

‘‘(4) PRIOR RECLASSIFICATION DETERMINATION.—If, after April 1, 2003, and 

prior to the time the 1-hour ozone standard no longer applies to a downwind 

area, the Administrator made a reclassification determination under subsection 

(b)(2)(A) for such downwind area, and the Administrator approves a plan consistent with subparagraphs (A) and (B) for such area, the reclassification shall 

be withdrawn and, for purposes of implementing the 8-hour ozone national ambient air quality standard, the area shall be treated as if the reclassification 

never occurred. Such plan must be submitted no later than 12 months following 

enactment of this subsection, and— ‘‘(A) the plan revision for the downwind area must comply with all control 

and planning requirements of this Act applicable under the classification 

that applied immediately prior to reclassification, including any requirements applicable to the area under section 172(c) for such standard; and 

‘‘(B) the plan must include any additional measures needed to demonstrate attainment no later than the date on which the last reductions in 

pollution transport that have been found by the Administrator to significantly contribute to nonattainment are required to be achieved by the 

upwind area or areas. 

The attainment date extended under this subsection shall provide for attainment of such national ambient air quality standard for ozone in the downwind 

area as expeditiously as practicable but no later than the end of the first complete ozone season following the date on which the last reductions in pollution 

transport that have been found by the Administrator to significantly contribute 

to nonattainment are required to be achieved by the upwind area or areas. 

‘‘(5) EXTENDED DATE.—The attainment date extended under this subsection 

shall provide for attainment of such national ambient air quality standard for 

ozone in the downwind area as expeditiously as practicable but no later than 

the new date that the area would have been subject to had it been reclassified 

under subsection (b)(2). 

‘‘(6) RULEMAKING.—Within 12 months after the enactment of this subsection, 

the Administrator shall, through notice and comment, promulgate rules to define the term ‘affected by transport to a degree that affects an areas ability to 

attain’ in order to ensure that downwind areas are not unjustly penalized, and 

for purposes of paragraphs (2) and (3) of this subsection.’’. 

SEC. 110. NORTHWEST CRUDE OIL SUPPLY. 

Section 5(b) of the Act entitled ‘‘An Act to authorize appropriations for fiscal year 

1978 to carry out the Marine Mammal Protection Act of 1972’’, enacted October 18, 

1977 (Public Law 95–136) is amended by striking ‘‘for consumption in the State of 

Washington’’. 

SEC. 111. DISCOUNTED SALES OF ROYALTY-IN-KIND OIL TO QUALIFIED SMALL REFINERIES. 

(a) REQUIREMENT.—The Secretary of the Interior shall issue and begin implementing regulations by not later than 60 days after the date of the enactment of 

this Act, under which the Secretary of the Interior shall charge a discounted price 

in any sale to a qualified small refinery of crude oil obtained by the United States 

as royalty-in-kind. 

(b) AMOUNT OF DISCOUNT.—The regulations shall provide that the amount of any 

discount applied pursuant to this section in any sale of crude oil to a qualified small 

refinery—

(1) shall reflect the actual costs of transporting such oil from the point of origin to the qualified small refinery; and 

(2) shall not exceed $4.50 per barrel of oil sold. 

(c) TERMINATION OF DISCOUNT.—This section and any regulations issued under 

this section shall not apply on and after any date on which the Secretary of Energy 

determines that United States domestic refining capacity is sufficient. 

(d) QUALIFIED SMALL REFINERY.—In this section the term ‘‘qualified small refinery’’ means a refinery of a small business refiner (as that term is defined in section 

45H(c)(1) of the Internal Revenue Code of 1986) that demonstrates to the Secretary 

of the Interior that it had unused crude oil processing capacity in 2004. 

SEC. 112. STUDY AND REPORT RELATING TO STREAMLINING PAPERWORK REQUIREMENTS. 

(a) STUDY.—The Administrator shall study ways to streamline the paperwork requirements associated with title V of the Clean Air Act and corresponding requirements under State laws, particularly with regard to States that have more stringent 

requirements than the Federal Government in this area. 

(b) REPORT.—Not later than one year after the date of the enactment of this Act, 

the Administrator shall report to Congress the results of the study made under subsection (a), together with recommendations on how to streamline those paperwork 

requirements. 

11 

SEC. 113. RESPONSE TO BIOMASS DEBRIS EMERGENCY. 

(a) USE OF BIOMASS DEBRIS AS FUEL.—Notwithstanding any other provision of 

law, the Secretary of Energy may authorize any facility to use as fuel biomass debris if—

(1) the debris results from a major disaster declared in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 

(42 U.S.C. 5170); 

(2) the debris is located in the area for which the major disaster is declared; 

and 

(3) the requirements of subsection (b) are met. 

(b) CERTIFICATION.—A facility described in subsection (a)—

(1) shall certify to the State in which the facility is located that no significant 

impact on meeting national ambient air quality standards will result and shall 

propose emission limits adequate to support such certification; and 

(2) may begin burning biomass debris fuel upon filing the certification required by paragraph (1) unless the State notifies the facility to the contrary. 

(c) EMISSION LIMITS.—The State in which a facility described in subsection (a) is 

located shall—

(1) adopt (or as appropriate amend) the proposed emission limits for the biomass burning at the facility; and 

(2) retain other existing emissions limits wherever they are necessary and 

reasonable. 

(d) NEW SOURCE REVIEW.—No activities needed to qualify a facility to burn biomass debris as fuel in accordance with this section shall trigger the requirements 

of new source review or new source performance standards under the Clean Air Act. 

TITLE II—INCREASING DELIVERY 

INFRASTRUCTURE 

SEC. 201. FEDERAL-STATE REGULATORY COORDINATION. 

(a) GOVERNOR’S REQUEST.—The Governor of a State may submit a request to the 

Commission for the application of process coordination and rules of procedure under 

section 202 to the siting of a crude oil or refined petroleum product pipeline facility 

in that State. 

(b) APPLICABILITY.—Section 202 shall only apply to crude oil or refined petroleum 

product pipeline facilities sited or proposed to be sited in a State whose Governor 

has requested such applicability under subsection (a). 

(c) INTERSTATE COMPACTS.—(1) The consent of Congress is given for 2 or more 

contiguous States to enter into an interstate compact, subject to approval by Congress, establishing regional pipeline siting agencies to facilitate siting of future 

crude oil or refined petroleum product pipeline facilities within those States. 

(2) The Secretary may provide technical assistance to regional pipeline siting 

agencies established under this subsection. 

SEC. 202. PROCESS COORDINATION AND RULES OF PROCEDURE. 

(a) DEFINITIONS.—For purposes of this title—

(1) the term ‘‘Commission’’ means the Federal Energy Regulatory Commission; and 

(2) the term ‘‘Federal pipeline authorization’’—

(A) means any authorization required under Federal law, whether administered by a Federal or State administrative agency or official, with respect 

to siting of a crude oil or refined petroleum product pipeline facility in 

interstate commerce; and 

(B) includes any permits, special use authorizations, certifications, opinions, or other approvals required under Federal law with respect to siting 

of a crude oil or refined petroleum product pipeline facility in interstate 

commerce. 

(b) DESIGNATION AS LEAD AGENCY.—

(1) IN GENERAL.—The Commission shall act as the lead agency for the purposes of coordinating all applicable Federal pipeline authorizations and related 

environmental reviews with respect to a crude oil or refined petroleum product 

pipeline facility. 

(2) OTHER AGENCIES.—Each Federal and State agency or official required to 

provide Federal pipeline authorization shall cooperate with the Commission and 

comply with the deadlines established by the Commission. 

(c) SCHEDULE.—

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(1) COMMISSION’S AUTHORITY TO SET SCHEDULE.—The Commission shall establish a schedule for all Federal pipeline authorizations with respect to a crude 

oil or refined petroleum product pipeline facility. In establishing the schedule, 

the Commission shall— (A) ensure expeditious completion of all such proceedings; and 

(B) accommodate the applicable schedules established by Federal law for 

such proceedings. 

(2) FAILURE TO MEET SCHEDULE.—If a Federal or State administrative agency 

or official does not complete a proceeding for an approval that is required for 

a Federal pipeline authorization in accordance with the schedule established by 

the Commission under this subsection, the applicant may pursue remedies 

under subsection (e). 

(d) CONSOLIDATED RECORD.—The Commission shall, with the cooperation of Federal and State administrative agencies and officials, maintain a complete consolidated record of all decisions made or actions taken by the Commission or by a Federal administrative agency or officer (or State administrative agency or officer acting 

under delegated Federal authority) with respect to any Federal pipeline authorization. Such record shall be the record for judicial review under subsection (e) of decisions made or actions taken by Federal and State administrative agencies and officials, except that, if the Court determines that the record does not contain sufficient 

information, the Court may remand the proceeding to the Commission for further 

development of the consolidated record. 

(e) JUDICIAL REVIEW.— (1) IN GENERAL.—The United States Court of Appeals for the District of Columbia shall have original and exclusive jurisdiction over any civil action for the 

review of— (A) an order or action related to a Federal pipeline authorization by a 

Federal or State administrative agency or official; and 

(B) an alleged failure to act by a Federal or State administrative agency 

or official acting pursuant to a Federal pipeline authorization. 

The failure of an agency or official to act on a Federal pipeline authorization 

in accordance with the Commission’s schedule established pursuant to subsection (c) shall be considered inconsistent with Federal law for the purposes 

of paragraph (2) of this subsection. 

(2) COURT ACTION.—If the Court finds that an order or action described in 

paragraph (1)(A) is inconsistent with the Federal law governing such Federal 

pipeline authorization, or that a failure to act as described in paragraph (1)(B) 

has occurred, and the order, action, or failure to act would prevent the siting 

of the crude oil or refined petroleum product pipeline facility, the Court shall 

remand the proceeding to the agency or official to take appropriate action consistent with the order of the Court. If the Court remands the order, action, or 

failure to act to the Federal or State administrative agency or official, the Court 

shall set a reasonable schedule and deadline for the agency or official to act on 

remand. 

(3) COMMISSION’S ACTION.—For any civil action brought under this subsection, 

the Commission shall promptly file with the Court the consolidated record compiled by the Commission pursuant to subsection (d). 

(4) EXPEDITED REVIEW.—The Court shall set any civil action brought under 

this subsection for expedited consideration. 

(5) ATTORNEY’S FEES.—In any action challenging a Federal pipeline authorization that has been granted, reasonable attorney’s fees and other expenses of litigation shall be awarded to the prevailing party. This paragraph shall not apply 

to any action seeking remedies for denial of a Federal pipeline authorization or 

failure to act on an application for a Federal pipeline authorization. 

SEC. 203. BACKUP POWER CAPACITY STUDY. 

Not later than 6 months after the date of enactment of this Act, the Secretary 

shall transmit to the Congress a report assessing the adequacy of backup power capacity in place as of the date of enactment of this Act, and the need for any additional capacity, to provide for the continuing operation during any reasonably foreseeable emergency situation, of those crude oil or refined petroleum product pipeline 

facilities that the Secretary finds to be significant to the Nation’s supply needs, in 

areas that have historically been subject to higher incidents of natural disasters 

such as hurricanes, earthquakes, and tornados. 

SEC. 204. SUNSET OF LOAN GUARANTEES. 

Section 116(a) of the Alaska Natural Gas Pipeline Act is amended by adding at 

the end the following new paragraph: 

‘‘(4) The Secretary shall not enter into an agreement under paragraph (1) or (2) 

after the date that is 24 months after the date of enactment of the Gasoline for 

13 

America’s Security Act of 2005 if the State of Alaska has not entered into an agreement pursuant to Alaska Stranded Gas Development Act which in good faith contractually binds the parties to deliver North Slope natural gas to markets via the 

proposed Alaska Natural Gas Pipeline.’’. 

SEC. 205. OFFSHORE PIPELINES. 

The Natural Gas Act is amended—

(1) in section 1(b) 15 U.S.C. 717(b)) by inserting after ‘‘to the production or’’

the following: ‘‘, except as provided in section 4(g),’’; and 

(2) in section 4 (15 U.S.C. 717(b)) by adding at the end the following: 

‘‘(g)(1) For the purposes of this subsection—

‘‘(A) the term ‘gas service provider’ means an entity that operates a facility 

located in the outer Continental Shelf that is used to move natural gas on or 

across the outer Continental Shelf; and 

‘‘(B) the term ‘outer Continental Shelf’ has the meaning given that term in 

section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)). 

‘‘(2) All gas service providers shall submit to the Commission annually the conditions of service for each shipper served, consisting of—

‘‘(A) the full legal name of the shipper receiving service; 

‘‘(B) a notation of shipper affiliation; 

‘‘(C) the type of service provided; 

‘‘(D) primary receipt points; 

‘‘(E) primary delivery points; 

‘‘(F) rates between each pair of points; and 

‘‘(G) other conditions of service deemed relevant by the gas service provider. 

‘‘(3) This subsection shall not apply to—

‘‘(A) a gas service company that serves exclusively a single entity (either itself 

or one other party), until such time as—

‘‘(i) the gas service provider agrees to serve a second shipper; or 

‘‘(ii) a determination is made that the gas service provider’s denial of a 

request for service is unjustified; 

‘‘(B) a gas service provider that serves exclusively shippers with ownership interests in both the pipeline operated by the gas service provider and the gas 

produced from a field or fields connected to a single pipeline, until such time 

as—

‘‘(i) the gas service provider offers to serve a nonowner shipper; or 

‘‘(ii) a determination is made that the gas service provider’s denial of a 

request for service is unjustified; 

‘‘(C) service rendered over facilities that feed into a facility where natural gas 

is first collected, separated, dehydrated, or otherwise processed; and 

‘‘(D) gas service providers’ facilities and service regulated by the Commission 

under section 7 of this Act. 

‘‘(4) When a gas service provider subject to this subsection alters its affiliates, customers, rates, conditions of service, or facilities, within any calendar quarter, it 

must then file with the Commission, on the first business day of the subsequent 

quarter, a revised report describing the status of its services and facilities.’’. 

SEC. 206. SAVINGS CLAUSE. 

Nothing in this title shall be construed to amend, alter, or in any way affect the 

jurisdiction or responsibilities of the Department of Transportation with respect to 

pipeline safety issues under chapter 601 of title 49, United States Code, or any 

other law. 

SEC. 207. CARBON-BASED FUEL CELL DEVELOPMENT. 

(a) GRANT AUTHORITY.—The Secretary is authorized to make a single grant to a 

qualified institution to design and fabricate a 5-kilowatt prototype coal-based fuel 

cell with the following performance objectives: 

(1) A current density of 600 milliamps per square centimeter at a cell voltage 

of 0.8 volts. 

(2) An operating temperature range not to exceed 900 degrees Celsius. 

(b) QUALIFIED INSTITUTION.—For the purposes of subsection (a), a qualified institution is a research-intensive institution of higher education with demonstrated expertise in the development of carbon-based fuel cells allowing the direct use of high 

sulfur content coal as fuel, and which has produced a laboratory-scale carbon-based 

fuel cell with a proven current density of 100 milliamps per square centimeter at 

a voltage of 0.6 volts. 

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

to the Secretary for carrying out this section $850,000 for fiscal year 2006. 

14 

TITLE III—CONSERVATION AND EDUCATION 

SEC. 301. DEPARTMENT OF ENERGY CARPOOLING AND VANPOOLING PROGRAM. 

(a) FINDINGS.—Congress finds the following: 

(1) Metropolitan transit organizations have reported heightened interest in 

carpooling and vanpooling projects in light of recent increases in gasoline prices. 

(2) The National Transportation Database reports that, in 2003, American 

commuters traveled over 440,000 miles using public transportation vanpools, an 

increase of 60 percent since 1996. 

(3) According to the Natural Resource Defense Council, if each commuter car 

carried just one more passenger once a week, American gasoline consumption 

would be reduced by about 2 percent. 

(b) ESTABLISHMENT OF PROGRAM.—The Secretary shall establish and carry out a 

program to encourage the use of carpooling and vanpooling to reduce the consumption of gasoline. The program shall focus on carpool and vanpool operations, outreach activities, and marketing programs, including utilization of the Internet for 

marketing and outreach. 

(c) GRANTS TO STATE AND LOCAL GOVERNMENTS.—As part of the program established under subsection (b), the Secretary may make grants to State and local governments for carpooling or vanpooling projects. The Secretary may make such a 

grant only if at least 50 percent of the costs of the project will be provided by the 

State or local government. If a private sector entity provides vehicles for use in a 

carpooling or vanpooling project supported under this subsection, the value of those 

vehicles may be counted as part of the State or local contribution to the project. 

(d) CONSIDERATIONS.—In making grants for projects under subsection (c), the Secretary shall consider each of the following: 

(1) The potential of the project to promote oil conservation. 

(2) The contribution of the project to State or local disaster evacuation plans. 

(3) Whether the area in which the project is located is a nonattainment area 

(as that term is defined in section 171 of the Clean Air Act (42 U.S.C. 7501)). 

SEC. 302. EVALUATION AND ASSESSMENT OF CARPOOL AND VANPOOL PROJECTS. 

(a) IN GENERAL.—The Administrator, in consultation with the Secretary, shall 

evaluate and assess carpool and vanpool projects funded under the congestion mitigation and air quality program established under section 149 of title 23, United 

States Code, to—

(1) reduce consumption of gasoline; 

(2) determine the direct and indirect impact of the projects on air quality and 

congestion levels; and 

(3) ensure the effective implementation of the projects under such program. 

(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the 

Administrator, in consultation with the Secretary, shall submit to Congress a report 

including recommendations and findings that would improve the operation and evaluation of carpool and vanpool projects funded under the congestion mitigation and 

air quality improvement program and shall make such report available to all State 

and local metropolitan planning organizations. 

SEC. 303. INTERNET UTILIZATION STUDY. 

(a) IN GENERAL.—The Secretary, under the program established in section 301, 

shall evaluate the capacity of the Internet to facilitate carpool and vanpool operations through—

(1) linking riders with local carpools and vanpools; 

(2) providing real-time messaging communication between drivers and riders; 

(3) assisting employers to establish intercompany vanpool and carpool programs; and 

(4) marketing existing vanpool and carpool programs. 

(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the 

Secretary shall submit to Congress a report including recommendations and findings that would improve Internet utilization in carpool and vanpool operations and 

shall make such report available to all State and local metropolitan planning organizations. 

SEC. 304. FUEL CONSUMPTION EDUCATION CAMPAIGN. 

(a) PARTNERSHIP.—The Secretary shall enter into a partnership with interested 

industry groups to create an education campaign that provides information to 

United States drivers about measures that may be taken to conserve gasoline. 

(b) ACCESSIBILITY.—The public information campaign shall be designed to reach 

the widest audience possible. The education campaign may include television, print, 

15 

Internet website, or any method designed to maximize the dissemination of gasoline 

savings information to drivers. 

(c) COST SHARING.—The Secretary shall provide no more than 50 percent of the 

cost of the campaign created under this section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

to the Secretary $2,500,000 for carrying out this section. 

SEC. 305. PROCUREMENT OF ENERGY EFFICIENT LIGHTING DEVICES. 

Section 553(d) of the National Energy Conservation Policy Act is amended by adding at the end the following new paragraph: 

‘‘(3) The head of an agency shall procure the most energy efficient and cost-effective light bulbs or other electrical lighting products, consistent with safety considerations, for use in that agency’s facilities and buildings.’’. 

SEC. 306. MINORITY EMPLOYMENT. 

Section 385 of the Energy Policy Act of 2005 is amended by adding at the end 

the following: 

‘‘(d) PROGRAM.—The Secretary of Energy is authorized and directed to establish 

a program to encourage minority students to study the earth sciences and enter the 

field of geology in order to qualify for employment in the oil, gas, and mineral industries. There are authorized to be appropriated for the program established under the 

preceding sentence $10,000,000.’’. 

TITLE IV—GASOLINE PRICE REFORM 

SEC. 401. SHORT TITLE. 

This title may be cited as the ‘‘Gas Price Gouging Prevention Act’’. 

SEC. 402. GASOLINE PRICE GOUGING PROHIBITED. 

(a) UNLAWFUL CONDUCT.—During a period and in an area of a major disaster, it 

shall be an unfair or deceptive act or practice in violation of section 5 of the Federal 

Trade Commission Act for any person to sell gasoline or diesel fuel at a price which 

constitutes price gouging as defined by rule pursuant to subsection (b). 

(b) PRICE GOUGING.—Not later than 1 year after the date of the enactment of this 

Act, the Commission shall promulgate any rules necessary for the enforcement of 

this section. Based on its findings from the investigation required by section 403, 

the Commission shall, in such rules, define ‘‘price gouging’’ for purposes of this section. Such rules shall be consistent with the requirements for declaring unfair acts 

or practices in section 5(n) of the Federal Trade Commission Act (15 U.S.C. 45(n)). 

(c) ENFORCEMENT BY FTC.—A violation of subsection (a) shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). The 

Federal Trade Commission shall enforce this Act in the same manner, by the same 

means, and with the same jurisdiction as though all applicable terms and provisions 

of the Federal Trade Commission Act were incorporated into and made a part of 

this Act. 

(d) PENALTIES.—Any person who violates subsection (a), or the rules promulgated 

pursuant to this section, shall be subject to a civil penalty of not more than $11,000 

per person per day in which a violation occurs. 

(e) DEFINITION OF MAJOR DISASTER.—

(1) DETERMINATION.—As used in this section, and for purposes of any rule 

promulgated pursuant to this section, the term ‘‘major disaster’’ means a major 

disaster declared by the President as defined in section 102(2) of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)) that 

the Secretary of Energy determines to have substantially disrupted the production, distribution, or supply of gasoline or diesel fuel. 

(2) APPLICABLE AREA AND PERIOD.—The prohibition in subsection (a) shall 

apply in an area determined to be a major disaster under paragraph (1) and 

for a period of 30 days after such determination is made. 

SEC. 403. FTC INVESTIGATION ON PRICE-GOUGING. 

(a) STUDY.—The Federal Trade Commission shall conduct an investigation into 

nationwide gasoline prices in the aftermath of Hurricane Katrina, including any evidence of price-gouging by subject companies described in subsection (b). Such investigation shall include—

(1) a comparison of, and analysis of the reasons for changes in, profit levels 

of subject companies during the 12-month period ending on August 31, 2005, 

and their profit levels for the month of September, 2005, including information 

16 

for particular companies on a basis that does not permit the identification of 

any company to which the information relates; 

(2) a summary of tax expenditures (as defined in section 3(3) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(3)) for such 

companies; 

(3) an examination of the effects of increased gasoline prices and gasoline 

price-gouging on economic activity in the United States; 

(4) an analysis of the overall cost of increased gasoline prices and gasoline 

price-gouging to the economy, including the impact on consumers’ purchasing 

power in both declared State and National disaster areas and elsewhere; and 

(5) an analysis of—

(A) the role and overall cost of credit card interchange rates on gasoline 

and diesel fuel retail prices; and 

(B) the varying cost of credit card interchange rates that are applied to 

different channels of trade. 

(b) SUBJECT COMPANIES.—The companies subject to the investigation required by 

this section shall be—

(1) any company with total United States wholesale sales of gasoline and petroleum distillates for calendar year 2004 in excess of $500,000,000; and 

(2) any retail distributor of gasoline and petroleum distillates against which 

multiple formal complaints (that identify the location of the particular retail 

distributor and provide contact information for the complainant) of pricegouging were filed in August or September 2005, with a Federal or State consumer protection agency. 

(c) EVIDENCE OF PRICE-GOUGING.—In conducting its investigation, the Commission shall treat as evidence of price-gouging any finding that the average price of 

gasoline available for sale to the public in September, 2005, or thereafter in a market area located in an area designated as a State or National disaster area because 

of Hurricane Katrina, or in any other area where price-gouging complaints have 

been filed because of Hurricane Katrina with a Federal or State consumer protection agency, exceeded the average price of such gasoline in that area for the month 

of August, 2005, unless the Commission finds substantial evidence that the increase 

is substantially attributable to additional costs in connection with the production, 

transportation, delivery, and sale of gasoline in that area or to national or international market trends. 

(d) REPORTS.—

(1) NOTIFICATION TO STATE AGENCIES.—In any areas of markets in which the 

Commission determines price increases are due to factors other than the additional costs, it shall also notify the appropriate State agency of its findings. 

(2) PROGRESS AND FINAL REPORTS TO CONGRESS.—The Commission shall provide information on the progress of the investigation to the Appropriations Committees of the House of Representatives and the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on 

Commerce, Science, and Transportation of the Senate, every 30 days after the 

date of enactment of this Act. The Commission shall provide those Committees 

a written interim report 90 days after such date, and shall transmit a final report to those Committees, together with its findings and recommendations, no 

later than 180 days after the date of enactment of this Act. Such reports shall 

include recommendations, based on its findings, for any legislation necessary to 

protect consumers from gasoline price-gouging in both State and National disaster areas and elsewhere. 

(e) EVIDENCE OF CRIMINAL MISCONDUCT.—If, during the investigation required by 

this section, the Commission obtains evidence that a person may have violated a 

criminal law, the Commission may transmit that evidence to appropriate Federal 

or State authorities. 

SEC. 404. FTC STUDY OF PETROLEUM PRICES ON EXCHANGE. 

Not later than 180 days after the date of enactment of this Act, the Federal Trade 

Commission shall transmit to Congress a report on the price of refined petroleum 

products on the New York Mercantile Exchange and the effects on such price, if any, 

of the following: 

(1) The geographic size of the delivery market and the number of delivery 

points. 

(2) The proximity of energy futures markets in relation to the source of supply. 

(3) The specified grade of gasoline deliverable on the exchange. 

(4) The control of the storage and delivery market infrastructure. 

(5) The effectiveness of temporary trading halts and the monetary threshold 

for such temporary trading halts. 

17 

TITLE V—STRATEGIC PETROLEUM RESERVE 

SEC. 501. STRATEGIC PETROLEUM RESERVE CAPACITY. 

(a) AUTHORITY TO DRAWDOWN AND SELL PETROLEUM PRODUCTS FOR EXPANSION OF

RESERVE.—Notwithstanding any other provision of law, the Secretary may drawdown and sell petroleum products from the Strategic Petroleum Reserve to construct, purchase, lease, or otherwise acquire additional capacity sufficient to permit 

filling the Strategic Petroleum Reserve to its maximum authorized level. 

(b) ESTABLISHMENT OF SPR EXPANSION FUND.—The Secretary of the Treasury 

shall establish in the Treasury of the United States an account to be known as the 

‘‘SPR Expansion Fund’’ (in this section referred to as the ‘‘Fund’’), and the proceeds 

from any sale pursuant to subsection (a) shall be deposited into the Fund. 

(c) OBLIGATION OF FUNDS FOR EXPANSION.—Amounts in the Fund may be obligated by the Secretary to carry out the purposes in subsection (a) to the extent and 

in such aggregate amounts as may be appropriated in advance in appropriations 

Acts for such purposes. 

SEC. 502. STRATEGIC PETROLEUM RESERVE SALE. 

Section 161(e) of the Energy Policy and Conservation Act (42 U.S.C. 6241(e)) is 

amended by inserting after paragraph (2) a new paragraph as follows: 

‘‘(3) Any contract under which petroleum products are sold under this section 

shall include a requirement that the person or entity that acquires the petroleum 

products agrees—

‘‘(A) not to resell the petroleum products before the products are refined; and 

‘‘(B) to refine the petroleum products primarily for consumption in the United 

States.’’. 

SEC. 503. NORTHEAST HOME HEATING OIL RESERVE CAPACITY. 

Section 181(a) of the Energy Policy and Conservation Act (42 U.S.C. 6250(a)) is 

amended by striking ‘‘2 million barrels’’ and inserting ‘‘5 million barrels’’. 

TITLE VI—COMMISSION FOR THE 

DEPLOYMENT OF THE HYDROGEN ECONOMY 

SEC. 601. ESTABLISHMENT. 

There is established a commission to be known as the ‘‘Commission for the Deployment of the Hydrogen Economy’’ (in this title referred to as the ‘‘Commission’’). 

SEC. 602. DUTIES OF COMMISSION. 

The Commission shall develop a strategic plan that identifies the best methods 

available to marshal the resources of the Federal Government, State governments, 

local governments, the private sector, and academia to achieve the mass commercialization of hydrogen as an energy source for stationary fuel cells and vehicle fuel 

cells at the soonest possible date. Such plan shall take into account actions previously taken by the Federal Government, State governments, local governments, 

the private sector, and academia. The Commission shall also examine ways to ensure that the United States can use all available feedstocks for hydrogen production, 

and shall make recommendations for an appropriate entity to monitor ongoing 

progress in implementing the strategic plan. 

SEC. 603. MEMBERSHIP. 

(a) NUMBER AND APPOINTMENT.—The Commission shall be composed of 8 members appointed as follows: 

(1) 2 members appointed by the Speaker of the House of Representatives. 

(2) 2 members appointed by the minority leader of the House of Representatives. 

(3) 2 members appointed by the majority leader of the Senate. 

(4) 2 members appointed by the minority leader of the Senate. 

(b) QUALIFICATIONS.—Individuals appointed under subsection (a) shall have at 

least 5 years of professional-level experience in science, technology, engineering, or 

public policy. The appointing officials shall coordinate their appointments so as to 

ensure that the Commission has a diverse range of such experience. 

(c) APPOINTMENT DATE.—Appointments under subsection (a) shall be made not 

later than 2 months after the date of enactment of this Act. 

(d) VACANCIES.—A vacancy in the Commission shall be filled in the manner in 

which the original appointment was made. 

(e) BASIC PAY.—

18 

(1) RATES OF PAY.—Members shall each be paid at a rate not to exceed the 

daily rate of basic pay for level V of the Executive Schedule for each day (including travel time) during which they are engaged in the actual performance 

of duties vested in the Commission. 

(2) PROHIBITION OF COMPENSATION OF FEDERAL EMPLOYEES.—Members of the 

Commission who are full-time officers or employees of the United States may 

not receive additional pay, allowances, or benefits by reason of their service on 

the Commission. 

(f) TRAVEL EXPENSES.—Each member 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. 

(g) QUORUM.—Five members of the Commission shall constitute a quorum but a 

lesser number may hold hearings. 

(h) CHAIRPERSON; VICE CHAIRPERSON.—The Chairperson and Vice Chairperson of 

the Commission shall be elected by the members. The Vice Chairperson shall be a 

member of the Commission appointed by an appointing official of a different political party than the official who appointed the Chairperson to the Commission. 

SEC. 604. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS. 

(a) STAFF.—Subject to rules prescribed by the Commission, the Commission may 

appoint and fix the pay of personnel as it considers appropriate. 

(b) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The staff of the Commission 

shall be appointed subject to the provisions of title 5, United States Code, governing 

appointments in the competitive service, and shall be paid in accordance with the 

provisions of chapter 51 and subchapter III of chapter 53 of that title relating to 

classification and General Schedule pay rates. 

(c) EXPERTS AND CONSULTANTS.—The Commission may procure temporary and 

intermittent services under section 3109(b) of title 5, United States Code. 

(d) 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 title. 

SEC. 605. POWERS OF COMMISSION. 

(a) HEARINGS AND SESSIONS.—The Commission may, for the purpose of carrying 

out this title, hold hearings, sit and act at times and places, take testimony, and 

receive evidence as the Commission considers appropriate. The Commission may administer oaths or affirmations to witnesses appearing before it. 

(b) POWERS OF 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 section. 

(c) OBTAINING OFFICIAL DATA.—The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry 

out this title. Upon request of the Chairperson or Vice Chairperson of the Commission, the head of that department or agency shall furnish that information to the 

Commission. 

(d) MAILS.—The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United 

States. 

(e) 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 title. 

(f) SUBPOENA POWER.—

(1) IN GENERAL.—The Commission may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to 

any matter under investigation by the Commission. The attendance of witnesses 

and the production of evidence may be required from any place within the 

United States at any designated place of hearing within the United States. 

(2) FAILURE TO OBEY A SUBPOENA.—If a person refuses to obey a subpoena 

issued under paragraph (1), the Commission may apply to a United States district court for an order requiring that person to appear before the Commission 

to give testimony, produce evidence, or both, relating to the matter under investigation. The application may be made within the judicial district where the 

hearing is conducted or where that person is found, resides, or transacts business. Any failure to obey the order of the court may be punished by the court 

as civil contempt. 

(3) SERVICE OF SUBPOENAS.—The subpoenas of the Commission shall be 

served in the manner provided for subpoenas issued by a United States district 

19 

court under the Federal Rules of Civil Procedure for the United States district 

courts. 

(4) SERVICE OF PROCESS.—All process of any court to which application is 

made under paragraph (2) may be served in the judicial district in which the 

person required to be served resides or may be found. 

SEC. 606. REPORT. 

The Commission shall transmit a report to the Congress not later than 8 months 

after the date of enactment of this Act. The report shall contain a detailed statement of the findings and conclusions of the Commission, together with its recommendations for legislation, administrative actions, and such other actions as the 

Commission considers appropriate. 

TITLE VII—CRITICAL ENERGY ASSURANCE 

SEC. 701. EVACUATION PLAN REVIEW. 

Not later than 6 months after the date of enactment of this Act, the Secretary 

shall transmit to the Congress a report of the Secretary’s review of the fuel supply 

plan components of State evacuation plans and the National Capitol region. Such 

report shall determine the sufficiency of such plans, and shall include recommendations for improvements thereto. Annually after the transmittal of a report under the 

preceding sentence, the Secretary shall transmit a report to the Congress assessing 

plans found insufficient under previous reports. 

SEC. 702. DISASTER ASSISTANCE. 

(a) AUTHORITY.—During any federally declared emergency or disaster, the Secretary may provide direct assistance to private sector entities that operate critical 

energy infrastructure, including refineries. 

(b) ASSISTANCE.—Assistance under this section may include emergency preparation and recovery assistance, including power generation equipment, other protective or emergency recovery equipment, assistance to restore access to water, power, 

or other raw materials, and transportation and housing for critical employees. The 

Secretary may request assistance from other Federal agencies in carrying out this 

section. 

SEC. 703. CRITICAL ENERGY ASSURANCE ACCOUNT. 

There is established in the Treasury an account known as the Critical Energy Assurance Account. The Secretary shall deposit into this account amounts appropriated to the Secretary for the purpose of carrying out this title and payments paid 

to the Secretary by any non-Federal source for the purpose of carrying out this title. 

The Secretary may receive and accept payments from any non-Federal source, which 

shall be available to the Secretary, without further appropriation, for carrying out 

this title. 

SEC. 704. REGULATIONS. 

The Secretary may issue regulations necessary or appropriate to carry out this 

title. 

PURPOSE AND SUMMARY

H.R. 3893, the Gasoline for America’s Security Act of 2005, or the 

GAS Act, seeks to increase the domestic production of transportation fuels, create sufficient capacity to deliver such fuels to consumers, make available more fuels throughout more regions of the 

country, and provide incentives to conserve fuel use in order to increase supply and decrease demand. The bill encourages new refinery capacity to increase gasoline supply by giving the Department 

of Energy (DOE) a new coordinating role, requiring DOE to establish a schedule for all Federal authorizations, providing new judicial review procedures, and providing regulatory risk insurance. 

The bill further requires the President to designate sites on Federal lands, including at least three closed military installations 

that are appropriate for the purposes of siting a refinery. Also, the 

President is authorized to enter into contract to have a military use 

20 

refinery permitted, constructed and operated to make petroleum 

products for military consumption. 

The GAS Act also seeks to address increasing gasoline prices by 

limiting the number of ‘‘boutique fuels’’ that have limited fuel supply to certain regions of the country. The Act requires the Administrator of the Environmental Protection Agency (EPA) to identify a 

total of six gasoline and diesel fuels for a Federal Fuels List, down 

from the approximately 17 today that are available in limited markets and contribute to a decrease in the fungibility of supply for 

use and consumption throughout the United States whenever supply disruptions or shortages of fuel occur. 

H.R. 3893 seeks to promote pipeline expansions by giving the 

Federal Energy Regulatory Commission (FERC) a new coordinating 

role, requiring FERC establish a schedule for all Federal authorizations and providing new judicial review procedures. Expeditious 

construction of the Alaska Natural Gas Pipeline is encouraged by 

sunsetting loan guarantees on the Alaska Natural Gas Pipeline 

within two years of enactment of the GAS Act of 2005, if the State 

of Alaska has not entered into an agreement regarding construction 

of the pipeline. Outer Continental Shelf ‘‘gathering’’ companies are 

required to provide key information to the Federal Energy Regulatory Commission to help prevent monopolistic practices that can 

increase costs for consumers. 

H.R. 3893 promotes conservation by establishing a DOE grant 

program that encourages the use of carpooling and vanpooling to 

reduce the consumption of gasoline. The Act also requires the Administrator of EPA to assess carpool and vanpool projects funded 

under the Congestion Mitigation and Air Quality Program to ensure the effective implementation of those projects under the program. Conservation is further promoted by establishing a publicprivate group through the DOE to create a multimedia public education campaign to inform drivers how to conserve fuel. 

The GAS Act protects consumers by banning price gouging in 

gasoline or diesel fuel sales and requiring the Federal Trade Commission (FTC) to promulgate a standard for price gouging within 

one year without affecting state anti-gouging measures. Further 

protections are afforded by requiring the FTC to report on the price 

of refined petroleum products on the New York Mercantile Exchange. 

H.R. 3893 promotes emergency planning by permitting the Secretary of the DOE to sell petroleum products from the Strategic Petroleum Reserve (SPR) to finance construction of the additional capacity needed to fill the SPR to 1 billion barrels. Furthermore, the 

GAS Act also requires the Secretary to review plans to protect energy supplies in the event of a national emergency. 

BACKGROUND AND NEED FOR LEGISLATION

Prior to Hurricanes Katrina and Rita, a number of forces were 

affecting oil markets resulting in higher prices. Increased demand 

both at home and abroad, production disruptions among major exporters, and the Organization of the Petroleum Exporting Companies’ (OPEC) ability to constrain supply, have all kept oil prices 

high. Until refining capacity and production capacity grow faster 

than demand, oil markets will likely remain tight and vulnerable 

21 

to supply disruptions, whether caused by weather, foreign production disruptions, or some other cause. 

Approximately 47 percent of U.S. refining capacity and 28 percent of oil production is concentrated in the Gulf of Mexico. Within 

a week of Hurricane Katrina’s landfall, the national average retail 

price for motor vehicle gasoline rose by 46 cents to $3.069 per gallon. Prices of other refined fuels also rose quickly in response to the 

hurricane. 

No new refinery has been constructed in the United States since 

1976. Total capacity at operating refineries is 17 million barrels per 

day, while total United States demand averages nearly 21 million 

barrels per day. This growing gap is met by an increasing amount 

of imports of refined products from foreign sources. Refined petroleum product imports are expected to grow from 7.9 percent to 10.7 

percent of total refined product by 2025. 

On August 29, 2005, Hurricane Katrina made landfall and 

caused considerable damage to the Gulf Coast communities in its 

path. The Gulf Coast region is home to a number of petroleum and 

natural gas operations. These operations were disrupted as a result 

of the storm. These disruptions caused a spike in gasoline prices. 

According to the Energy Information Administration the average 

retail price of gasoline rose from $2.58 a gallon on August 29th and 

peaked at $3.04 on September 5th. The spike in gasoline prices 

sparked intense debate about the cause of price increases in the retail gasoline market. The debate raised the possibility of price 

gouging. 

Twenty-eight states prohibit price gouging. Those laws vary significantly, but define price gouging on the basis of increases in 

price for a commodity during a time of emergency. The amount of 

consideration given to normal and expected market forces varies 

significantly from state to state. There is currently no Federal prohibition against price gouging. Committee hearings on the effects 

of Katrina revealed an interest in a federal prohibition of and enforcement for price gouging. Those hearings included testimony 

concerning the potential market distortions and shortages produced 

when artificial regulation supplants normal supply-and-demand as 

the primary means of pricing a commodity. In this legislation, the 

Committee provides for the first statutory Federal prohibition on 

gasoline price gouging, by treating it as an unfair trade practice 

under the FTC Act. 

The Committee also authorizes the FTC to investigate gasoline 

prices in areas affected by Katrina as well as other areas where 

consumer complaints alleging price gouging were filed with state 

and Federal agencies. The FTC will examine the prices before 

Katrina made landfall and compare those prices with the postKatrina prices. The FTC will also examine and evaluate price increases in light of any disruptions that would have caused cost increases in connection with production, distribution, transportation 

or delivery of gasoline and diesel fuel. The Committee believes the 

findings of the FTC will provide valuable information for the basis 

of determining a proper definition of ‘‘price gouging’’ as it relates 

to gasoline and diesel fuel. 

22 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

COMMITTEE CONSIDERATION

On Wednesday, September 28, 2005, the Full Committee met in 

open markup session and ordered H.R. 3893 reported to the House, 

amended, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The following are 

the recorded votes taken on amendments offered to the measure, 

including the names of those Members voting for and against. A 

motion by Mr. Barton to order H.R. 3893 reported to the House, 

amended, was agreed to by a voice vote. 

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Insert graphic folio 24 HR244.001
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Insert graphic folio 27 HR244.004
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Insert graphic folio 28 HR244.005
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Insert graphic folio 29 HR244.006
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Insert graphic folio 30 HR244.007
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Insert graphic folio 31 HR244.008
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Insert graphic folio 33 HR244.010
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Insert graphic folio 35 HR244.012
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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has not held oversight or legislative hearings on this legislation. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

H.R. 3893 attempts to provide some relief to the pressures acting 

upon U.S. oil markets by increasing refinery capacity, promoting 

geographic diversity in siting new refineries, improving delivery infrastructure, promoting conservation, vigorously investigating 

charges of price gouging, and expanding the capacity of the Strategic Petroleum Reserve (SPR). 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 3893, the 

Gasoline for America’s Security Act of 2005, would result in no new 

or increased budget authority, entitlement authority, or tax expenditures or revenues. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, October 5, 2005. 

Hon. JOE BARTON, 

Chairman, Committee on Energy and Commerce, 

House of Representative, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3893, the Gasoline for 

America’s Security Act of 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Kathy Gramp. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN, 

Director. 

Enclosure. 

H.R. 3893—Gasoline for America’s Security Act of 2005 

Summary: H.R. 3893 would authorize new programs and spending related to the supply and use of petroleum and other energy 

products. It would provide subsidies to small refiners, make certain 

federal lands available for siting new refineries, and revise the 

36 

terms and procedures for approving these and other energy 

projects. The bill also would modify various standards in the Clean 

Air Act, direct the Federal Trade Commission (FTC) to issue and 

enforce regulations regarding gasoline price gouging, and create 

two new funds to cover certain costs incurred by energy firms. 

Other provisions would authorize appropriations for the construction of a refinery for the Armed Services, for several energy studies 

and conservation initiatives, and for a Commission for the Deployment of the Hydrogen Economy. Finally, H.R. 3893 would authorize the Department of Energy (DOE) to increase the capacity of the 

Northeast Home Heating Oil Reserve and allow oil in the Strategic 

Petroleum Reserve (SPR) to be sold for new purposes. 

CBO estimates that enacting H.R. 3893 would increase direct spending by $1.5 billion over the next five years, and by $3 billion 

over the 2006–2015 period. Enacting this bill could affect revenues, 

but CBO estimates that any effect would not be significant. In addition, CBO estimates that implementing the bill would cost about 

$500 million over the 2006–2010 period, assuming appropriation of 

the necessary amounts. 

H.R. 3893 contains numerous mandates, as defined in the Unfunded Mandates Reform Act (UMRA), that would affect both intergovernmental and private-sector entities. CBO estimates that the 

aggregate cost of those mandates would be below the annual 

thresholds established in UMRA ($62 million for intergovernmental 

mandates and $123 million for private-sector mandates in 2005, 

adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 3893 is shown in the following table. The costs 

of this legislation fall within budget functions 050 (national defense), 270 (energy), 300 (natural resources and environment), 370 

(commerce and housing assistance), and 950 (undistributed offsetting receipts). 

By fiscal year in, millions of dollars— 

2006 2007 2008 2009 2010 

CHANGES IN DIRECT SPENDING 1

Estimated Budget Authority ................................................................ 300 300 300 300 300 

Estimated Outlays. .............................................................................. 300 300 300 300 300 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Specified Authorizations: 

Authorization Level ..................................................................... 5 2 2 2 2 

Estimated Outlays ...................................................................... 4 3 2 2 2 

Refinery for Armed Services: 

Estimated Authorization Level ................................................... 5 15 15 60 300 

Estimated Outlays ...................................................................... 3 11 15 42 204 

Heating Oil Reserve: 

Estimated Authorization Level 2 ................................................. 10 73 68 8 8 

Estimated Outlays ...................................................................... 10 73 68 8 8 

Other: 

Estimated Authorization Level ................................................... 18 10 6 6 6 

Estimated Outlays ...................................................................... 14 12 7 6 6 

Total Authorizations in H.R. 3893 

Estimated Authorization Level ................................. 38 100 91 76 316 

Estimated Outlays .................................................... 31 99 92 58 220 

1 CBO estimates that the direct spending costs would continue at a level of about $300 million a year through 2015. 

2 These estimates are based on oil price assumptions in CBO’s March 2005 baseline. Using current prices could raise the provision’s total 

cost by $75 million or more. 

37 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted in the fall of 2005 and that the amounts authorized 

will be appropriated as necessary. 

Direct spending and revenues 

CBO estimates that enacting H.R. 3893 would reduce offsetting receipts (a credit against direct spending) by an estimated $3 billion over the 2006–2015 period as a result of provisions that would 

provide federal royalty oil to small refiners at below-market prices. 

Other provisions in the bill could affect direct spending and revenues, but CBO estimates that the net effect of those changes would 

not be significant. 

Discounted Sales of Royalty-In-Kind Oil to Small Refiners. Under 

current law, when collecting royalties from federal oil and gas 

leases, the Secretary of the Interior may accept payments in the 

form of product (known as royalty in-kind, or RIK) rather than 

cash. The Minerals Management Service (MMS) sells most of the 

oil taken in-kind from offshore leases on the open market, but a 

portion of that oil is sold through competitive auctions to certain 

small refiners. Through that program, eligible refiners can request 

to purchase up to 60 percent of their supply of crude oil from MMS 

rather than on the open market. Net proceeds from sales of offshore oil under those programs are deposited in the Treasury as 

offsetting receipts (a credit against direct spending). 

Section 111 would require MMS to offer crude oil to eligible re- finers at a discount of up to $4.50 per barrel. Because current law 

effectively prohibits MMS from accepting less than the market 

value of oil sold to small refiners, enacting this provision would reduce offsetting receipts from those sales. In addition, CBO expects 

that offering discounted oil would significantly increase the volume 

of oil that small refiners request to purchase from the agency, resulting in a further loss of receipts. Based on information from 

MMS, CBO estimates that increased demand under the proposed 

program would greatly exceed the supply of oil that the agency is 

currently taking in-kind. MMS currently receives about 180,000 

barrels of RIK oil per day. Assuming that the agency makes all of 

that oil available for sale at a discount, we estimate that this provision would reduce offsetting receipts by up to $300 million a year 

starting in 2006. 

Under the bill, MMS could only offer discounted oil during times 

when the Secretary of Energy determines that domestic refining capacity is insufficient. The Secretary is not currently required to 

make such a determination, and for this estimate, CBO assumes 

that the Administration would not deem domestic capacity to be 

sufficient in the near future because refinery capacity is unlikely 

to change significantly in the next decade. Obtaining the necessary 

approvals, permits, and financing for a new refinery general1y 

takes several years, and construction usually takes an additional 

several years. 

Strategic Petroleum Reserve. DOE built the existing SPR with appropriated funds and filled it to a target level of 700 million barrels 

with oil purchased directly on the open market and oil transferred 

from the Department of the Interior under the RIK program. 

Under current law, DOE is authorized to expand the capacity of 

the SPR to 1 billion barrels of oil. 

38 

H.R. 3893 would allow the department to sell some of the oil in 

the existing SPR to raise money to finance an expansion of the 

SPR. Any spending for new capacity would be subject to appropriation. If DOE opted to draw down the nation’s existing SPR reserve 

for this purpose, CBO expects that it would take steps to refill the 

reserve by transferring oil from the Department of the Interior’s 

RIK program as DOE has done in recent years. Thus, any increase 

in offsetting receipts from the sale of SPR oil would be offset by a 

reduction in receipts from royalties collected by the Department of 

the Interior, resulting in no significant net change in federal receipts over time. Given the complexity of these transactions, it is 

unclear whether DOE would use these authorities in the next few 

years. 

Energy Assistance Accounts. H.R. 3893 would create two new 

sources of financial assistance for energy firms: a Standby Refinery 

Support Account to pay for certain private costs resulting from regulatory or litigation delays in the construction or renovation of refineries, and a Critical Energy Assurance Account to assist certain 

private energy companies during federally declared disasters or 

emergencies. Funding for the new accounts would be derived from 

any voluntary contributions from nonfederal entities and any funds 

provided in future appropriation acts. DOE would be allowed to 

spend private-sector contributions without further appropriation 

but no federal funds could be spent without appropriation. CBO anticipates that contributions from nonfederal sources and any related spending are likely to be negligible. 

Lease of Federal Lands for Refineries. H.R. 3893 would direct the 

President to designate and lease sites on federally owned lands for 

the construction of refineries, subject to certain terms and conditions. Factors to be considered for selecting federal property include 

proximity to crude oil supplies and related pipeline infrastructure, 

geographic diversity of refinery capability, and approval of the Governor of the state. CBO has no information about when or which 

sites might be leased; however, based on payment rates for the use 

of other federal land, CBO estimates that offsetting receipts from 

such leases probably would not be significant. 

Revenues 

H.R. 3893 would expand the scope of the FTC’s enforcement authorities by treating price gouging as a violation of rules regarding 

unfair or deceptive acts or practices. The FTC would be authorized 

to enforce new standards and impose civil penalties for any violations. Amounts collected as civil penalties are classified as governmental receipts (revenues). CBO estimates that enacting this provision would be unlikely to have a significant effect on revenues. 

Spending subject to appropriation 

H.R. 3893 would authorize appropriations for various activities, 

ranging from the design and construction of a refinery to studies 

of ways to promote carpools and vanpools. CBO estimates that implementing those provisions would cost about $500 million over the 

2006–2010 period, assuming appropriation of the necessary 

amounts. 

Specified Authorizations. This bill would expressly authorize the 

appropriation of $13 million for three programs administered by 

39 

DOE. It would authorize the appropriation of $10 million for a 

DOE program to encourage minority students to study geologic 

subjects that would enable them to work in energy industries; $2.5 

million for a campaign to encourage drivers to conserve gasoline; 

and $850,000 for a grant to an educational institution to develop 

a prototype of a coal-based fuel cell. 

Federal Refinery Project. H.R. 3893 would authorize the President to build a petroleum refinery plant on federal land to serve 

the fuel needs of the Armed Services, subject to certain terms and 

conditions. A project could be developed only if the President found 

that domestic refining capability was not sufficient and if construction funds were appropriated in advance. 

Petroleum refineries are expensive facilities, with capital costs 

ranging from about $2 billion to $4 billion, depending on their size, 

capabilities, and location. Industry studies suggest that obtaining 

the necessary approvals and financing typically takes several years 

and that construction usually takes more than five years. Given 

the lead times for planning such a facility, CBO expects that nearterm costs would primarily be for planning and siting a facility, 

with construction-related expenditures beginning in 2010. Thus, assuming the President chooses to build a refinery and that the necessary amounts are appropriated, CBO estimates that implementing this project would cost about $275 million over the 2006–

2010 period for planning and preconstruction activities and a total 

of at least $2 billion over the 10-year period. 

Northeast Home Heating Oil Reserve. H.R. 3893 would increase 

the authorized capacity of the Northeast Home Heating Oil Reserve 

from 2 million barrels to 5 million barrels. For this estimate, we 

assume that DOE would purchase additional oil over the 2006–

2008 period. 

Using the oil price assumptions in CBO’s March 2005 baseline 

projections, we estimate that adding 3 million barrels would cost 

about $167 million dollars over the 2006–2010 period, assuming 

appropriation of the necessary amounts. However, current prices 

far exceed those assumed in the March baseline. If oil prices remain near current levels, the cost of this provision could be higher 

by $75 million or more. 

Energy Assistance Accounts. This bill would authorize appropriations to the proposed Standby Refinery Support Account and Critical Energy Assurance Account. The amount of any federal contributions over the 2006–2010 period is uncertain because the need 

for funding would depend on actions taken by private parties or 

events such as natural disasters that are hard to predict. CBO’s estimate does not include any costs for implementing the two funds 

over the 2006–2010 period, but such costs could be significant in 

later years. 

The Standby Refinery Support Account would pay for certain 

costs incurred by private developers of new or expanded refinery 

capacity in the United States. Refiners would be eligible for payments if projects experience delays due to federal or state regulatory actions or unforeseen litigation. Virtually all costs attributable to the delay would be eligible for compensation, including 

principal or interest due on any debt and the costs of complying 

with new regulations. 

40 

The need to appropriate money for this purpose would occur only 

if private parties choose to invest in new or expanded refinery capacity and experienced delays. CBO believes that the likelihood of 

new refinery projects being built in the next few years is relatively 

low, given the high capital cost of refineries, their generally low 

rates of return, and the availability of alternative sources of refined 

products. Even if firms choose to invest in new or refurbished refineries, it is likely that the costs that could be attributed to a regulatory delay would be incurred after 2010, given the standard lead 

times needed for planning, siting, and financing a project. Standby 

support for such multibillion dollar projects could be very costly 

over a longer period, however, because such large projects commonly experience some regulatory or litigation delays in the course 

of their development. 

The Critical Energy Assurance Account would be available to assist private firms that operate critical energy infrastructure during 

any federally declared emergency or disaster. The fund could be 

used to pay for equipment needed to restore access to power, water, 

and other materials as well as for logistical support and emergency 

planning. Such costs typically are borne by private companies, and 

CBO assumes that such federal assistance would only occur in the 

event of a major disaster such as Hurricane Katrina. Because such 

disasters are uncommon and cannot be predicted, CBO’s estimate 

does not include any spending for this program over the 2006–2010 

period. 

Other Authorizations. Other provisions of the bill would authorize appropriations for several energy studies and conservation initiatives at DOE; FTC actions on gasoline price gouging; new rulemaking proceedings at the Environmental Protection Agency; and 

a Commission for the Deployment of the Hydrogen Economy. Based 

on the costs of similar programs and activities, CBO estimates that 

implementing those provisions would cost about of $45 million over 

the 2006–2010 period. 

Intergovernmental and private-sector impact: H.R. 3893 contains 

numerous mandates, as defined in UMRA, that would affect both 

intergovernmental and private-sector entities. The bill would preempt the authority of state and local governments to implement 

their own clean fuel programs and to authorize the siting of refineries within their borders. Those preemptions constitute intergovernmental mandates as defined in UMRA, however, CBO estimates 

that they would not impose significant additional costs on state, 

local, or tribal governments and would be well below the threshold 

established in UMRA ($62 million in 2005, adjusted annually for 

inflations). 

The bill also would impose several private-sector mandates on all 

U.S. refineries and natural gas service providers. Based on information provided by industry and government sources, CBO expects 

that the aggregate direct costs of complying with those mandates 

would be minimal compared to the annual threshold established by 

UMRA for private-sector mandates ($123 million in 2005, adjusted 

annually for inflation). 

State participation and presidential designation 

Section 101 would preempt the authority of state and local governments that receive a Presidential designation for the purposes 

41 

of siting a refinery on federal lands within their borders. A Governor of a state receiving such a designation would be able to object 

to the designation, but the Congress would be authorized to override such an objection. CBO estimates that the costs associated 

with this preemption would be minimal. 

Governmental entities also would be subject to a judicial review 

and possibly fees associated with litigation if they do not comply 

with procedures associated with a Presidential designation. CBO 

cannot estimate the number of judicial reviews or the amount of 

fees that could result from enactment of this provision; however, 

we expect that the requirements would not impose significant costs. 

Waiver authority for extreme fuel supply emergencies 

Section 107 would authorize the President, in consultation with 

the EPA and DOE, to waive—for a period not more than 90 days— state or local statutes or regulations related to fuel or fuel-additive 

requirements. This provision also would preempt state authority to 

address local or regional concerns with air quality. CBO estimates 

that this preemption would not impose significant additional costs 

on governmental entities. 

Federal list of fuel blends 

The Clean Air Act allows individual states to implement their 

own clean fuel programs to address local or regional concerns about 

air quality. The Energy Policy Act of 2005 (EPACT) requires the 

EPA to (1) determine the total number of fuels approved by the 

federal government in all state implementation plans and (2) publish a list of those fuels in the Federal Register for public review 

and comment no later than November 6, 2005. EPACT also limits 

the total number of fuels on the approved list and would prohibit 

the addition of new fuels to the list without the removal of an older 

fuel. 

Section 108 would require EPA to identify and publish in the 

Federal Register a new list of six approved fuel blends, and thereby 

limit the number of federally approved fuel blends. The federal list 

of fuels would supersede any list currently allowed under state implementation plans. The federal fuels list would include one diesel 

fuel, one alternative diesel fuel, one conventional gasoline for ozone 

attainment areas, one reformulated gasoline, and two additional 

gasoline blends with Reid Vapor pressure (RVP) controls for use in 

ozone nonattainment areas. RVP indicates how quickly a substance 

evaporates. Gasoline with a high RVP evaporates more readily at 

a given temperature, allowing components of gasoline that contribute to smog formation to escape into the atmosphere. 

In reviewing state implementation plans under section 108, EPA 

would be required to deny plans containing fuels not on the federally approved list. This provision would preempt state authority to 

implement their own clean fuel programs. CBO estimates that the 

costs associated with this preemption would be minimal. 

In effect, section 108 also would require any refinery currently 

producing a fuel blend that is not on the federal fuels list to cease 

production of that fuel. Such a restriction would constitute a private-sector mandate as defined in UMRA. According to various industry contacts, most refineries are capable of changing their fuel 

blends with minimal, if any, retooling. Those sources also sugVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR244P1.XXX HR244P1
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gested that the new federal list would not require refineries to 

incur costs due to losses associated with the possibility of not using 

current blend stocks because all fuel blends contain similar additives but in different mixture ratios. Consequently, CBO estimates 

that the costs associated with any retooling necessary to comply 

with the provisions of this section would be minimal, if any. 

Reporting requirements for gas service providers 

Section 205 would require all gas service providers to submit to 

the Federal Energy Regulatory Commission (FERC) annual reports 

regarding the conditions of service for each shipper served. Currently, gas service providers are not required to issue such reports 

to FERC. Requiring gas service providers to generate and submit 

such reports to FERC would constitute a private-sector mandate as 

defined in UMRA. Since the information being requested is collected as a part of each business transaction, CBO estimates that 

the costs associated with generating and submitting such reports 

once a year would be small. 

Estimate prepared by: Federal Costs: Kathleen Gramp and 

Megan Carroll. Impact on State, Local, and Tribal Governments: 

Lisa Ramirez-Branum. Impact on the Private Sector. Craig 

Cammarata. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional authority for this legislation is provided in Article I, section 8, clause 

3, which grants Congress the power to regulate commerce with foreign nations, among the several States, and with the Indian tribes. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title; table of contents 

Section 1 designates the title of the bill, the ‘‘Gasoline for America’s Security Act of 2005.’’

43 

Section 2. Findings 

Section 2 presents the findings of Congress. 

Section 3. Definitions 

Section 3 defines the terms reference throughout the Act. 

Section 101. State participation and presidential designation 

Section 101 encourages the siting of new or the expansion of existing refineries by giving the DOE a new coordinating role, requiring DOE establish a schedule for all Federal authorizations and 

providing new judicial review procedure if the new or expanded refinery is to be located in a state whose Governor has requested application of such procedures or if the proposed refinery or refinery 

expansion is to be located on Federal land that has been designated 

by the President as appropriate for the purposes of siting a refinery. Federal lands designated by the President may include closed 

military bases. 

Section 102. Process coordination and rules of procedure 

Section 102 provides a process for obtaining all Federal authorizations required to site, construct, operate, or expand a refinery 

and is intended to provide for a timely resolution of the refinery 

authorization process. Under this section, DOE is identified as lead 

agency for the purposes of coordinating all Federal authorizations 

required to site, construct, operate, or expand a refinery. As lead 

agency, DOE is required to set a schedule and develop a consolidated project record of all Federal authorizations required for the 

refinery project. The D.C. Circuit Court of Appeals is given exclusive jurisdiction over all appeals of an agency decision regarding a 

Federal authorization. The term Federal authorization means any 

authorization required under Federal law, whether administered 

by a Federal or state administrative agency or official. In any proceeding brought pursuant to subsection (e), if the court finds that 

an order, action, or failure to act would prevent the siting, construction, expansion, or operation of the refinery, the court shall remand the proceeding to the agency or official to take appropriate 

action consistent with the order of the court. 

Section 103. Refinery revitalization repeal 

Section 103 repeals Subtitle H of Title III of the Energy Policy 

Act of 2005. 

Section 104. Standby support for refineries 

Section 104 authorizes the Secretary of Energy (Secretary) to 

provide standby support for the construction of new refinery capacity on sites in states where the Governor has requested such support or on sites designated by the President pursuant to section 

101 of the Act. This provision is limited to the first 2 million barrels per day of new refinery construction or refurbishment of existing, but non-operating facilities. Sponsors of new refinery capacity 

may enter into contracts with the Secretary to be reimbursed for 

certain unforeseen regulatory or litigation delays that prevent commencement of operations, or substantially reduce throughput. 

Sponsors may be reimbursed for debt obligations and consequential 

damages. The Secretary shall not reimburse any costs that result 

44 

from the facility sponsor failing to take any action required by law 

or regulation, or events within the control of the sponsor. 

Section 105. Military use refinery 

Section 105 authorizes the President to enter into contracts with 

private industry to have a refinery permitted, constructed, and operated to manufacture petroleum products for consumption by the 

Armed Forces of the United States, provided the President has 

made a determination that there is not sufficient refining capacity 

in the United States. 

Section 106. New source review under Clean Air Act 

Section 106 directs the EPA, under the Clean Air Act New 

Source Review programs, to use the maximum legal flexibly under 

existing law in order to enable energy industry facilities to undertake projects to maintain, to restore, and to improve the efficiency, 

the reliability, or the availability of such facilities. This section 

clarifies that the term ‘‘modification’’ as used in both the New 

Source Review Program and the New Source Performance Standards Program should be consistent. Section 106 would codify the 

NSPS definition of modification as it applies to routine maintenance, repair, and replacement and apply the NSPS definition of 

modification in 40 C.F.R. 60.14(h) to all industrial sources. Finally, 

section 106 codifies the EPA’s previously issued Equipment Replacement Provision rule. 

Section 107. Waiver authority for extreme fuel supply emergencies 

Section 107 provides the President the authority to temporarily 

waive Federal, state, and local fuel or fuel additive requirements 

in the event of an extreme and unusual supply circumstance 

caused by a natural disaster. Waivers issued by the President, in 

consultation with EPA and DOE, are for the time period necessary 

to permit the correction of the extreme and unusual supply circumstance caused by the natural disaster but shall not be for a period longer than 90 days. Existing Section 211(c)(4)(C)(ii) of the 

Clean Air Act, enacted as Section 1541(a) of the Energy Policy Act 

of 2005, granted the Administrator of the EPA fuel waiver authority in the event of an extreme and unusual fuel supply circumstance. Section 107 of the bill is in addition to the authority 

granted to EPA under the Energy Policy Act of 2005, not a substitute for it. This section also directs that states shall not be subject to any actions against or sanctions, including the revision of an 

applicable implementation plan, due to any emissions attributable 

to a waiver issued by either EPA or the President. 

A temporary waiver issued by the President under this section 

shall not permit an alteration of the properties of the fuel to the 

extent that the use of the fuel prevents the normal functioning of 

the vehicle, engine, component, system, or equipment in which the 

fuel is used or would materially degrade such functioning over the 

useful life of the vehicle, engine, component, system, or equipment. 

This limitation ensures that the President, in exercising the waiver 

authority under this section, takes into account practical considerations for current production plans for auto manufacturing. However, allowing the President broad waiver discretion in times of a 

natural disaster is critical in times where a fuel emergency may reVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00044 Fmt 6659 Sfmt 6602 E:\HR\OC\HR244P1.XXX HR244P1
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sult. Therefor, the President shall consider the effects of such waiver only to the extent it prevents the normal functioning of the vehicle, engine, component, system, or equipment, from operating. A 

presidential waiver of a control or prohibition respecting the use of 

a fuel or fuel additive shall not be allowed if it will prevent the vehicles it is intended to help operate from doing so during times of 

an extreme and unusual supply circumstance caused by a natural 

disaster. The President also shall use discretion regarding the 

waiver if such waiver would materially degrade functioning over 

the useful life of the vehicle, engine, component, system, or equipment. The term ‘‘materially degrade’’ is meant to include more than 

just performance and warranty issues that could be caused by 

slight changes in the fuel standards. This consideration should be 

weighed against the scope of the natural disaster and the long-term 

effects any such waiver would bring. 

Section 108. List of fuel blends 

Section 108 directs the EPA to develop a Federal Fuels List comprised of a total of 6 gasoline and diesel fuels for use in states except California or states dependent on refineries in California for 

gasoline or diesel fuel. Section 108 directs the Federal Fuels List 

to include fuels that, as determined by the Administrator of EPA 

and the Secretary, reduce ozone emissions to assist states in attaining established ozone standards and will not result in a reduction in supply or producibility, including that caused by a reduction 

in domestic refining capacity as a result of the adoption of the Federal Fuels List. Furthermore, the list developed must include one 

Federal diesel fuel, one alternative diesel fuel, one conventional 

gasoline, one reformulated gasoline meeting the requirements of 

the Clean Air Act, and two additional gasolines with Reid vapor 

pressure controls for use in ozone nonattainment areas of varying 

degrees of severity. The Administrator and the Secretary must 

focus their analysis and proposal on those fuels that provide environmental benefits and are already prevalent in the domestic market. If the Administrator or the Secretary seeks to offer alternatives to widely used fuels in the proposed Federal Fuels List, 

those alternatives must have the ability to reduce ozone emissions 

and not reduce domestically produced supply. Nothing in Section 

108 shall be construed or interpreted to affect the elimination, required by the Energy Policy Act of 2005, of the oxygen content requirement for reformulated gasoline under the Clean Air Act. 

This section provides that should DOE determine that the list of 

fuels developed result in a reduction in supply or producibility, 

EPA and DOE will report that finding to Congress and suspend the 

implementation of the list. Upon such a finding and suspension of 

implementation of the clause, the EPA and DOE will conduct the 

study required under Section 1541(c) of the Energy Policy Act of 

2005. 

Section 108 amends the Boutique Fuels Study in Section 1541(c) 

of the Energy Policy Act of 2005 to include an examination of the 

impact on ozone emissions and supply of a mandatory reduction to 

a total of 6 fuels along with the original focus of the study on the 

development of a fuels system maximizing fungibility and supply, 

while preserving air quality and reducing price volatility, including 

that which may have resulted from the proliferation of boutique 

46 

fuels. Nothing in this section shall be construed or interpreted to 

alter or affect any existing law or regulation in effect pertaining to 

any fuel additive registered in accordance with the Clean Air Act, 

including ethanol and methyl tertiary butyl ether, or to alter or affect any state’s authority to enact laws or issue regulations therefor 

after the effective date of this section. 

Section 109. Attainment dates for downwind ozone nonattainment 

areas 

Section 109 permits a downwind area to seek, by petitioning 

EPA, an attainment date extension 18 months prior to or within 

18 months after its attainment date deadline. The Administrator 

may extend the attainment date for the downwind area, in lieu of 

reclassification, if the Administrator: (1) determines that any area 

is a downwind area with respect to a particular National Ambient 

Air Quality Standard (NAAQS) for ozone; (2) approves a plan revision for such area which complies with all requirements applicable 

under the current classification of the downwind area, includes additional measures needed to demonstrate attainment by the extended attainment date sought, and provides appropriate measures 

to ensure no area located downwind of the downwind area receiving the extended attainment date will be affected by transport to 

a degree that affects the area’s ability to attain; and (3) determines 

the downwind area has demonstrated it is affected by transport 

from an upwind area to a degree that affects the area’s ability to 

attain. The extended date shall be for the attainment of such 

NAAQS as expeditiously as practicable, and by no later than the 

date the area would have been subject to, had it been reclassified. 

Furthermore, section 109 grants the Administrator the ability to 

withdraw the reclassification of a downwind area reclassified after 

April 1, 2003, and prior to the revocation of the 1-hour ozone standard, if the Administrator made the reclassification determination 

and approved a plan for the downwind area, submitted within 12 

months of enactment. The plan shall comply with all control and 

planning requirements applicable to the classification of the downwind area prior to reclassification and include any additional measures needed to demonstrate attainment no later than the date on 

which the last reductions in pollution transport are required to be 

achieved by the upwind area or areas. The attainment date extension in such case shall provide for attainment in the downwind 

area as expeditiously as practicable, but no later than the end of 

the first complete ozone season following the date on which the last 

reductions in pollution transport found to significantly contribute 

to nonattainment are required to be achieved by the upwind area 

or areas. 

Section 110. Northwest crude oil supply 

Section 110 lifts Federal law restrictions on the purpose for 

which crude oil imports imported through the navigable waters of 

Puget Sound may be used and consumed. 

Section 111. Discounted sales or royalty-in-kind oil to qualified 

small refineries 

Section 111 requires the Secretary of the Interior (Secretary) to 

issue and implement regulations under which the Secretary shall 

47 

charge a discounted price in any sale to a qualified small refinery 

of crude oil obtained by the United States as royalty-in-kind. 

Section 112. Study and report relating to streamlining paperwork 

requirements 

Section 112 requires the EPA Administrator to study and provide 

a report to Congress regarding techniques to streamline paperwork 

requirements associated with Title V of the Clean Air Act and corresponding state law. The report must include an analysis of the 

possible efficiencies of allowing a more stringent state filing and filing process to replace any corresponding federal filing and filing 

process requirements. 

Section 113. Response to biomass debris emergency 

Section 113 permits the Secretary of Energy to authorize any facility to use biomass debris as fuel if: (1) the debris results from 

a declared major disaster; (2) the debris is located in the area 

where the disaster was declared; and, (3) if certification is provided 

that the facility will present no significant impact on meeting national ambient air quality standards. 

Section 201. Federal-State regulatory coordination 

Section 201 encourages the siting of crude and petroleum product 

pipelines that will be used in interstate commerce by giving the 

FERC a new coordinating role, requiring FERC establish a schedule for all Federal authorizations and providing new judicial review 

procedures if the pipeline is to be located in a state whose Governor has requested application of such procedures. This section 

also authorizes interstate compacts, subject to approval by Congress, establishing regional pipeline siting agencies to facilitate 

siting of future crude oil and refined petroleum product pipeline facilities within those States. 

Section 202. Process coordination and rules of procedure 

Section 202 provides a process for obtaining all Federal authorizations required to site crude oil or petroleum product pipelines 

that will be used in interstate commerce. Under this section, FERC 

is identified as lead agency for the purposes of coordinating all Federal authorizations required to site a crude oil or petroleum product pipeline. As lead agency, FERC is required to set a schedule 

and develop a consolidated project record of all Federal authorizations required for the pipeline project. The D.C. Circuit Court of 

Appeals is given exclusive jurisdiction over all appeals of an agency 

decision regarding a Federal authorization. 

Section 203. Backup power capacity study 

Section 203 requires the Secretary of Energy to transmit to Congress within 6 months a report assessing the adequacy of backup 

power capacity, and the need for additional capacity, to provide for 

continuing operation of major crude oil and refined product facilities located in areas subject to higher incidents of natural disasters 

such as hurricanes, tornadoes, and earthquakes. 

48 

Section 204. Sunset of loan guarantees 

Section 204 sunsets loan guarantees for the Alaska Natural Gas 

Pipeline if the State of Alaska has not entered into an agreement 

regarding construction of the pipeline under the Alaska Stranded 

Gas Development Act within 24 months of enactment of this Act. 

Section 205. Offshore pipelines 

Section 205 amends the Natural Gas Act to require natural gas 

gathering service providers operating in the Outer Continental 

Shelf to provide certain information regarding such operations. 

Such information shall include the full legal name of the shipper(s) 

receiving service, the type of service(s) provided, primary receipt 

point(s), primary delivery point(s), rates between each pair of 

point(s) and other conditions of service deemed relevant by the gas 

service provider. 

Section 206. Savings clause 

Section 206 provides that nothing within Title II of this Act shall 

be construed to amend, alter or in any way affect the jurisdiction 

or responsibilities of the Department of Transportation with respect to pipeline safety issues under chapter 601 of title 49 of the 

United States Code. 

Section 207. Carbon-based fuel cell development 

Section 207 authorizes the Secretary to make a grant to a qualified institution to design and fabricate a 5-kilowatt prototype coalbased fuel cell with certain performance objectives. 

Section 301. Department of Energy carpooling and vanpooling program 

The Committee recognizes the potential of carpooling and vanpooling to aid Americans seeking relief from high gas prices. Section 301 directs the Secretary to establish and carry out a program 

to encourage the use of carpooling and vanpooling. The Secretary 

may make matching grants to state and local governments for carpooling or vanpooling projects. The section further states that vehicles provided by private sector entities may be counted as part of 

the state or local contributor to the project. When determining 

grants under the program, the Secretary shall consider the projects 

potential to conserve oil, its contribution to state and local disaster 

planning, and the status of attainment in the area the project is 

located, with emphasis put on nonattainment areas. 

Section 302. Evaluation and assessment of carpool and vanpool 

projects 

Section 302 requires the EPA Administrator to evaluate and assess the capacity of carpool and vanpool projects funded under the 

Congestion Mitigation and Air Quality (CMAQ) program to reduce 

consumption of gasoline and to determine the direct and indirect 

impact of the projects on air quality and congestion levels. 

The Administrator shall further assess whether CMAQ funds are 

being properly dedicated towards carpooling and vanpooling programs, particularly those operated by metropolitan planning organizations and nonprofit transportation management associations. 

Should the Administrator find that carpool and vanpool programs 

49 

are not being effectively implemented, then the Administrator shall 

identify recommendations to improve the operation of carpool 

projects in a report to Congress. 

Section 303. Internet utilization study 

Section 303 directs the Secretary to study ways in which the 

Internet is currently being used to facilitate vanpooling and carpooling, and the manner in which the Internet can be used to advance these projects. In particular, the Secretary should evaluate 

techniques to match riders with local drivers, including emerging 

instant messaging systems that allow for near on demand carpooling. The report may discuss how this technology can be applied 

to both inter-company carpools and other existing vanpool services. 

Section 304. Fuel consumption education campaign 

Section 304(a) requires the Secretary to establish a public-private 

partnership to create a public education campaign to inform drivers 

how to conserve fuel. It has been widely reported that there are 

simple actions drivers can take to make substantial progress toward conserving fuel, and the campaign should educate consumers 

on how best to utilize these specific options already at their disposal. The campaign should educate consumers, for instance, that 

fuel can be saved by driving the speed limit. A vehicle loses approximately one percent in fuel economy for each one mile per hour 

driven above 55 mph. A passenger car that is rated at 30 miles per 

gallon would achieve 28.5 miles per gallon at 55 miles per hour, 27 

miles per gallon at 60 miles per hour, and only 25.5 miles per gallon at 70 miles per hour. By eliminating the idling of 145 million 

passenger vehicles for five minutes a day, approximately four million gallons of gasoline can be conserved daily. Inflating tires to the 

proper inflation level can result in substantial fuel savings. For 

every two to three pounds per square inch of under inflation of a 

tire, up to one percent in gas mileage can be lost. Thus, if half of 

all Americans’ vehicles have properly inflated tires, at least 2.8 million gallons of gasoline could be saved daily. A properly tuned vehicle can consume over 25 percent less gasoline than a poorly tuned 

vehicle. The simple act of replacing a clogged air filter can improve 

fuel economy by as much as 10 percent. The Committee expects 

this kind of information to be conveyed to the consumer in a multimedia public education campaign. The Secretary should confer with 

all Federal agencies as appropriate in developing and implementing the education campaign. 

The Committee believes that the task of educating U.S. drivers 

can be best accomplished by joining the financial resources of the 

Federal Government with the resources of specific transportation 

industry sectors, such as automobile manufacturers, tire manufacturers, automobile dealers, oil companies, and motorist organizations such as the American Automobile Association, to create a 

multi-media public education campaign to communicate this information to U.S. drivers. Contributions for the public education campaign from the private sector should be allocated based on size and 

funding of each such organization. 

Section 304(b) directs the Secretary to make the public education 

campaign as widely accessible as possible. To most efficiently use 

funds, the Committee intends that the Secretary work in partnerVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR244P1.XXX HR244P1
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ship with a private, nonprofit agency that is the leading producer 

of public service advertisements and is able to use the services of 

volunteer advertising agencies and donated media, such as the Ad 

Council. The education campaign may include broadcast television 

and radio, print, Internet websites, or any other method designed 

to maximize the dissemination of gasoline conservation information 

to United States drivers. 

Section 304(c) states that the Secretary shall provide no more 

than 50 percent of the funding for the campaign. Finally, section 

304(d) authorizes $2,500,000 in appropriations. 

Section 305. Procurement of energy efficient lighting devices 

Section 305 requires agencies of the Federal government to purchase the most energy efficient and cost-effective electric lighting 

products available, consistent with safety considerations. 

Section 306. Minority employment 

Section 306 amends Section 385 of the Energy Policy Act of 2005 

to direct the Secretary to establish a program to encourage minority students to study earth sciences and enter the field of geology 

in order to qualify for employment in the oil, gas, and mineral industries. This section authorizes the appropriation of $10,000,000. 

Section 401. Short title 

Section 401 provides that Title IV shall be known as the ‘‘Gas 

Price Gouging Prevention Act.’’

Section 402. Gasoline price gouging prohibited 

Section 402(a) makes it unlawful during a period and in an area 

of a disaster for any person to sell gasoline or diesel fuel at a price 

that constitutes price gouging as defined by rule by the FTC. Such 

a violation would be treated as an unfair or deceptive practice 

under Section 5 of the FTC Act. The term any person is intended 

to cover all persons in the supply chain of the production and distribution of gasoline and diesel fuel. 

Section 402(b) provides the FTC shall issue rules to enforce this 

section within one year of enactment of this Act. In writing the 

rules, the FTC shall define ‘‘price gouging’’ for purposes of this section based on its findings from the investigation it conducts pursuant to section 403 of this Act. By linking the definition of price 

gouging to the required investigation, the Committee intends this 

requirement to provide substantive and objective standards that 

can be applied nationally based on the evidence and the situation. 

The Committee does not intend the definition of price gouging to 

delineate specific price increases that would constitute price 

gouging. 

The rules promulgated by the FTC shall be consistent with the 

requirements of section 5(n) of the FTC Act for unfair acts or practices. Section 5(n) stipulates that the FTC has no authority to declare an act or practice unfair unless the act or practice meets certain criteria. Specifically, the act must cause or be likely to cause 

substantial injury to consumers ‘‘which is not reasonably avoidable 

by consumers themselves and not outweighed by countervailing 

benefits to consumers or to competition.’’ Price increases for legitimate market reasons do not constitute an injury to consumers. The 

51 

Committee recognizes the legitimacy of price increases to signal 

supply shortages. Finally, in the context of price gouging, the Committee intends that countervailing benefits under section 5(n) of 

the FTC Act include an analysis of the benefits of increases in 

prices in a time of supply shortages. 

The Committee intends that a rule defining ‘‘price gouging’’ will 

adhere to these requirements. These criteria provide an appropriate balance for the FTC in its rulemaking and will be used in 

making a distinction between price increases due to market conditions and price gouging which is unfair in that ‘‘gouging’’ is unrelated to actual supply-and-demand forces. 

Section 402(c) provides that a violation of subsection (a) shall be 

enforced as a violation of an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the FTC Act. The FTC shall enforce this Act with all its powers and jurisdiction as if all were incorporated directly into the FTC Act (except as provided in section 

402(d)). This provision is intended to clarify that the FTC has all 

its enforcement authority prescribed under the FTC Act. 

Section 402(d) provides that anyone who violates subsection (a) 

shall be subject to a civil penalty up to $11,000 per day that a violation occurs. As described in subsection (c), the FTC maintains enforcement authority for penalties, including equitable relief. 

Section 402(e) provides the Definition of a Major Disaster, which 

is the same as a disaster declared by the President defined by the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act, 

but also requires that the Secretary of Energy determine that the 

disaster has substantially disrupted the production, distribution, or 

supply of gasoline or diesel fuel. Such a determination triggers the 

prohibition in subsection (a) to the area declared a disaster and for 

a period of 30 days. 

Section 403. FTC investigation on price-gouging 

Section 403(a) requires the FTC to conduct an investigation into 

nationwide gasoline prices as well as evidence of price gouging in 

the aftermath of Hurricane Katrina. The investigation should also 

include an analysis and comparison of profit level for companies for 

the month of September 2005, compared to the profit levels for the 

previous 12 months. The investigation should include non-identifying information for particular companies. 

The investigation should also include a summary of tax expenditures for such companies, an examination of the effects of increased 

gasoline prices and gasoline price gouging on the economic activity 

in the U.S., and the overall cost of increased gasoline prices and 

price gouging to the economy including the impact on consumers’

purchasing power in both declared State and National disaster 

areas and elsewhere. 

Section 403 (a)(5) requires the FTC in the conduct of the study 

on price gouging to provide an analysis of the role and overall cost 

of credit card interchange rates on gasoline and diesel fuel retail 

prices and the varying cost of credit card interchange rates that are 

applied to different channels of trade. 

Section 403(b) specifies that the investigation should examine 

wholesalers with more than $500,000,000 in annual sales revenue 

and any retail gas distributor who is the subject of multiple conVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6602 E:\HR\OC\HR244P1.XXX HR244P1
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sumer complaints filed with a state consumer protection agency alleging gas price gouging in August or September 2005. 

Section 403(c) directs the FTC to treat as evidence of price 

gouging certain findings of its investigation. Specifically, a finding 

that the average price in an area affected by Katrina or in an area 

where consumer complaints of price gouging were filed exceeded 

the average price in that area for the month of August 2005 shall 

be treated as evidence of price gouging. It shall not be treated as 

price gouging if the average price increase is substantially due to 

cost increases associated with production, transportation, delivery, 

and sale of gasoline in that area or to national or international 

market trends. This provision is meant to take into account the 

natural economics of supply and demand that affect prices, either 

locally or nationally, related to disruptions in the supply chain. 

Such disruptions will be expected to raise average prices, all else 

held constant. The Committee interprets price gouging to be price 

increases that are otherwise unrelated to the economics of supply 

and demand. 

The FTC is required to report any finding of price increases unrelated to supply and demand costs to appropriate state and Federal agencies, as well as provide the relevant Congressional Committees of jurisdiction with a report of its finding and recommendations. 

Section 404. FTC study of petroleum prices on exchange 

Section 404 requires that the FTC complete a study on the price 

of refined petroleum products on the New York Mercantile Exchange. The study should consider the effects of such price on the: 

(1) geographic size of delivery market; (2) proximity of energy futures markets to the source of supply; (3) specified grade of gasoline deliverable on the exchange; (4) control of the storage and delivery market infrastructure; and, (5) effectiveness of trading halts. 

The FTC is to complete the study six months from the date of 

enactment. 

Section 501. Strategic Petroleum Reserve capacity 

Section 501 authorizes the Secretary to drawdown crude oil from 

the Strategic Petroleum Reserve (Reserve) for the purpose of financing the acquisition of increased capacity for the Reserve. Revenue generated from any such drawdown is to be deposited in a 

Strategic Petroleum Reserve Expansion Fund. The Committee 

would expect the Secretary to exercise fiscal responsibility and conduct any such drawdown at times when crude oil prices are generally higher and restock the Reserve when crude oil prices are 

generally lower. 

Section 502. Strategic Petroleum Reserve sale 

Section 502 requires that crude sold from the Strategic Petroleum Reserve to refiners be used for consumption in the United 

States and not be sold before it has been refined. 

Section 503. Northeast Home Heating Oil Reserve capacity 

Section 503 increases the total authorized capacity for the Northeast Home Heating Oil Reserve from 2 million barrels to 5 million 

barrels. 

53 

Section 601. Establishment 

Section 601 establishes the name of the Commission as the Commission for the Deployment of the Hydrogen Economy. 

Section 602. Duties of Commission 

Section 602 sets the duties of the Commission, namely to develop 

a strategic plan that identifies the best methods to marshal all financial resources, both public and private sector, to achieve mass 

commercialization of hydrogen. 

Section 603. Membership 

Section 603 creates a Commission of 8 appointed members with 

at least 5 years of experience in science, technology, engineering, 

or public policy. Each member shall be paid at a rate not to exceed 

the pay for level V of the Executive Schedule. Federal employees 

may not receive pay. 

Section 604. Staff of Commission; experts and consultants 

Section 604 allows the Commission to appoint and fix the pay of 

staff as appropriate, and may procure temporary and intermittent 

services of experts and consultants. Upon request of the Commission, the head of any Federal department or agency may detail any 

personnel of that department to the Commission. 

Section 605. Powers of Commission 

Section 605 allows the Commission to hold hearings, take testimony, and receive evidence. The Commission may also secure information from any department or agency, use the mails as other departments and agencies, and may request administrative support 

services from the Administrator of General Services. Finally, the 

Commission may issue subpoenas and apply to a U.S. District 

Court for enforcement of such subpoenas. 

Section 606. Report 

Section 606 requires the Commission to transmit its report to 

Congress, including findings and recommendations, no later than 8 

months after the date of enactment of this Act. 

Section 701. Evacuation plan review 

Section 701 requires the Secretary within six months to review 

and report to Congress on the sufficiency of the fuel supply component of State and the National Capital region evacuation plans, 

and to make recommendations. It further requires the Secretary to 

report yearly thereafter on state evacuation plans that were found 

insufficient. 

Section 702. Disaster assistance 

Section 702 allows the Secretary to provide direct assistance during Federally declared emergencies or disasters to private entities 

to restore critical energy infrastructure, including refineries. Assistance may include emergency preparation and recovery assistance, including power generation equipment, protective or recovery 

equipment, and assistance to restore access to water and power, 

and transportation and housing for critical employees. The Secretary may request assistance from other Federal agencies. 

54 

Section 703. Critical Energy Assurance Account 

Section 703 creates an account in the United States Treasury to 

deposit amounts appropriated or received from non-Federal sources 

that shall be available to the Secretary to carry out this title. 

Section 704. Regulations 

Section 704 permits the Secretary of Energy to issue regulations 

needed to carry out this title. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

ENERGY POLICY ACT OF 2005 

* * * * * * * 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Energy Policy 

Act of 2005’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as 

follows: 

Sec. 1. Short title; table of contents. 

* * * * * * * 

TITLE III—OIL AND GAS 

Subtitle A—Petroleum Reserve and Home Heating Oil 

* * * * * * * 

øSubtitle H—Refinery Revitalization 

øSec. 391. Findings and definitions. 

øSec. 392. Federal-State regulatory coordination and assistance.¿ 

* * * * * * * 

TITLE III—OIL AND GAS 

* * * * * * * 

Subtitle G—Miscellaneous 

* * * * * * * 

SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS. 

(a) * * * 

* * * * * * * 

(d) PROGRAM.—The Secretary of Energy is authorized and directed to establish a program to encourage minority students to 

study the earth sciences and enter the field of geology in order to 

qualify for employment in the oil, gas, and mineral industries. 

55 

There are authorized to be appropriated for the program established 

under the preceding sentence $10,000,000. 

* * * * * * * 

øSubtitle H—Refinery Revitalization 

øSEC. 391. FINDINGS AND DEFINITIONS. 

ø(a) FINDINGS.—Congress finds that—

ø(1) it serves the national interest to increase petroleum refining capacity for gasoline, heating oil, diesel fuel, jet fuel, 

kerosene, and petrochemical feedstocks wherever located within the United States, to bring more supply to the markets for 

the use of the American people; 

ø(2) United States demand for refined petroleum products 

currently exceeds the country’s petroleum refining capacity to 

produce such products; 

ø(3) this excess demand has been met with increased imports; 

ø(4) due to lack of capacity, refined petroleum product imports are expected to grow from 7.9 percent to 10.7 percent of 

total refined product by 2025; 

ø(5) refiners are still subject to significant environmental 

and other regulations and face several new requirements under 

the Clean Air Act (42 U.S.C. 7401 et seq.) over the next decade; and 

ø(6) better coordination of Federal and State regulatory reviews may help facilitate siting and construction of new refineries to meet the demand in the United States for refined products. 

ø(b) DEFINITIONS.—In this subtitle: 

ø(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Environmental Protection Agency. 

ø(2) STATE.—The term ‘‘State’’ means— ø(A) a State; 

ø(B) the Commonwealth of Puerto Rico; and 

ø(C) any other territory or possession of the United 

States. 

øSEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE. 

ø(a) IN GENERAL.—At the request of the Governor of a State, the 

Administrator may enter into a refinery permitting cooperative 

agreement with the State, under which each party to the agreement identifies steps, including timelines, that it will take to 

streamline the consideration of Federal and State environmental 

permits for a new refinery. 

ø(b) AUTHORITY UNDER AGREEMENT.—The Administrator shall be 

authorized to—

ø(1) accept from a refiner a consolidated application for all 

permits required from the Environmental Protection Agency, to 

the extent consistent with other applicable law; 

ø(2) enter into memoranda of agreement with other Federal 

agencies to coordinate consideration of refinery applications 

and permits among Federal agencies; and 

56 

ø(3) enter into memoranda of agreement with a State, under 

which Federal and State review of refinery permit applications 

will be coordinated and concurrently considered, to the extent 

practicable. 

ø(c) STATE ASSISTANCE.—The Administrator is authorized to provide financial assistance to State governments to facilitate the hiring of additional personnel with expertise in fields relevant to consideration of refinery permits. 

ø(d) OTHER ASSISTANCE.—The Administrator is authorized to 

provide technical, legal, or other assistance to State governments 

to facilitate their review of applications to build new refineries.¿ 

* * * * * * * 

TITLE XV—ETHANOL AND MOTOR 

FUELS 

* * * * * * * 

Subtitle C—Boutique Fuels 

SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS. 

(a) * * * 

* * * * * * * 

(c) STUDY AND REPORT TO CONGRESS ON BOUTIQUE FUELS.—

(1) * * * 

ø(2) FOCUS OF STUDY.—The primary focus of the study required under paragraph (1) shall be to determine how to develop a Federal fuels system that maximizes motor fuel 

fungibility and supply, addresses air quality requirements, and 

reduces motor fuel price volatility including that which has resulted from the proliferation of boutique fuels, and to recommend to Congress such legislative changes as are necessary 

to implement such a system. The study should include the impacts on overall energy supply, distribution, and use as a result of the legislative changes recommended.¿ 

(2) FOCUS OF STUDY.—The primary focus of the study required under paragraph (1) shall be to determine how to develop a Federal fuels system that maximizes motor fuel 

fungibility and supply, preserves air quality standards, and reduces motor fuel price volatility that results from the proliferation of boutique fuels, and to recommend to Congress such legislative changes as are necessary to implement such a system. 

The study should include the impacts on overall energy supply, 

distribution, and use as a result of the legislative changes recommended. The study should include an analysis of the impact 

on ozone emissions and supply of a mandatory reduction in the 

number of fuel blends to 6, including one Federal diesel fuel, 

one alternative diesel fuel blend, one conventional gasoline for 

ozone attainment areas, one reformulated gasoline (RFG) meeting the requirements of subsection (k), and 2 additional gasoVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00056 Fmt 6659 Sfmt 6603 E:\HR\OC\HR244P1.XXX HR244P1
57 

line blends with Reid vapor pressure (RVP) controls for use in 

ozone nonattainment areas of varying degrees of severity. 

* * * * * * * 

CLEAN AIR ACT 

* * * * * * * 

TITLE I—AIR POLLUTION PREVENTION AND CONTROL 

* * * * * * * 

PART D—PLAN REQUIREMENTS FOR NONATTAINMENT AREAS

* * * * * * * 

Subpart 2—Additional Provisions for Ozone 

Nonattainment Areas 

* * * * * * * 

SEC. 181. CLASSIFICATIONS AND ATTAINMENT DATES. 

(a) * * * 

* * * * * * * 

(d) EXTENDED ATTAINMENT DATE FOR CERTAIN DOWNWIND

AREAS.—

(1) DEFINITIONS.—In this subsection: 

(A) The term ‘‘upwind area’’ means an area that— (i) affects nonattainment in another area, hereinafter 

referred to as a downwind area; and 

(ii) is either— (I) a nonattainment area with a later attainment 

date than the downwind area, or 

(II) an area in another State that the Administrator has found to be significantly contributing to 

nonattainment in the downwind area in violation 

of section 110(a)(2)(D) and for which the Administrator has established requirements through notice 

and comment rulemaking to eliminate the emissions causing such significant contribution. 

(B) The term ‘‘current classification’’ means the classification of a downwind area under this section at the time of 

the determination under paragraph (2). 

(2) EXTENSION.—Notwithstanding the provisions of subsection (b)(2) of this section, a downwind area that is not in attainment within 18 months of the attainment deadline required 

under this section may seek an extension of time to come into 

attainment by petitioning the Administrator for such an extension. If the Administrator—

(A) determines that any area is a downwind area with 

respect to a particular national ambient air quality standard for ozone; 

(B) approves a plan revision for such area as provided in 

paragraph (3) prior to a reclassification under subsection 

(b)(2)(A); and 

58 

(C) determines that the petitioning downwind area has 

demonstrated that it is affected by transport from an 

upwind area to a degree that affects the area’s ability to attain, 

the Administrator, in lieu of such reclassification, may extend 

the attainment date for such downwind area for such standard 

in accordance with paragraph (5). 

(3) APPROVAL.—In order to extend the attainment date for a 

downwind area under this subsection, the Administrator may 

approve a revision of the applicable implementation plan for the 

downwind area for such standard that— (A) complies with all requirements of this Act applicable 

under the current classification of the downwind area, including any requirements applicable to the area under section 172(c) for such standard; 

(B) includes any additional measures needed to demonstrate attainment by the extended attainment date provided under this subsection, and provides for implementation of those measures as expeditiously as practicable; and 

(C) provides appropriate measures to ensure that no area 

downwind of the area receiving the extended attainment 

date will be affected by transport to a degree that affects 

the area’s ability to attain, from the area receiving the extension. 

(4) PRIOR RECLASSIFICATION DETERMINATION.—If, after April 

1, 2003, and prior to the time the 1-hour ozone standard no 

longer applies to a downwind area, the Administrator made a 

reclassification determination under subsection (b)(2)(A) for 

such downwind area, and the Administrator approves a plan 

consistent with subparagraphs (A) and (B) for such area, the reclassification shall be withdrawn and, for purposes of implementing the 8-hour ozone national ambient air quality standard, the area shall be treated as if the reclassification never occurred. Such plan must be submitted no later than 12 months 

following enactment of this subsection, and—

(A) the plan revision for the downwind area must comply 

with all control and planning requirements of this Act applicable under the classification that applied immediately 

prior to reclassification, including any requirements applicable to the area under section 172(c) for such standard; 

and 

(B) the plan must include any additional measures needed to demonstrate attainment no later than the date on 

which the last reductions in pollution transport that have 

been found by the Administrator to significantly contribute 

to nonattainment are required to be achieved by the upwind 

area or areas. 

The attainment date extended under this subsection shall provide for attainment of such national ambient air quality standard for ozone in the downwind area as expeditiously as practicable but no later than the end of the first complete ozone season following the date on which the last reductions in pollution 

transport that have been found by the Administrator to significantly contribute to nonattainment are required to be achieved 

by the upwind area or areas. 

59 

(5) EXTENDED DATE.—The attainment date extended under 

this subsection shall provide for attainment of such national 

ambient air quality standard for ozone in the downwind area 

as expeditiously as practicable but no later than the new date 

that the area would have been subject to had it been reclassified 

under subsection (b)(2). 

(6) RULEMAKING.—Within 12 months after the enactment of 

this subsection, the Administrator shall, through notice and 

comment, promulgate rules to define the term ‘‘affected by 

transport to a degree that affects an areas ability to attain’’ in 

order to ensure that downwind areas are not unjustly penalized, and for purposes of paragraphs (2) and (3) of this subsection. 

* * * * * * * 

TITLE II—EMISSION STANDARDS FOR MOVING SOURCES 

* * * * * * * 

PART A—MOTOR VEHICLE EMISSION AND FUEL STANDARDS

* * * * * * * 

REGULATION OF FUELS

SEC. 211. (a) * * * 

* * * * * * * 

(c)(1) * * * 

* * * * * * * 

(4)(A) * * * 

* * * * * * * 

(C)(i) * * * 

* * * * * * * 

(v)(I) For the purpose of alleviating an extreme and unusual fuel 

or fuel additive supply emergency resulting from a natural disaster, 

the President, in consultation with the Administrator and the Secretary of Energy—

(aa) may temporarily waive any control or prohibition respecting the use of a fuel or fuel additive required by this section; and 

(bb) may preempt and temporarily waive any related or 

equivalent control or prohibition respecting the use of a fuel or 

fuel additive prescribed by a State or local statute or regulation, 

including any such requirement in a State implementation 

plan. 

(II) The effective period of a waiver under this clause shall be the 

time period necessary to permit the correction of the extreme and 

unusual fuel or fuel additive supply emergency caused by the natural disaster, except that such period shall not be longer than 90 

days. 

(III) A temporary waiver issued under this clause shall not permit 

an alteration of the properties of the fuel to the extent that the use 

of the fuel prevents the normal functioning of the vehicle, engine, 

component, system, or equipment in which the fuel is used or would 

60 

materially degrade such functioning over the useful life of the vehicle, engine, component, system, or equipment. 

(vi) A State shall not be subject to any finding, disapproval, or 

determination by the Administrator under section 179, no person 

may bring an action against a State or the Administrator under section 304, and the Administrator shall not take any action under section 110(c) to require the revision of an applicable implementation 

plan, because of any emissions attributable to a waiver granted by 

the Administrator under clause (ii) or by the President under clause 

(v). 

ø(v)¿ (vii) Nothing in this subparagraph shall— (I) * * * 

* * * * * * * 

ø(v)(I) The Administrator shall have no authority, when considering a State implementation plan or a State implementation plan 

revision, to approve under this paragraph any fuel included in such 

plan or revision if the effect of such approval increases the total 

number of fuels approved under this paragraph as of September 1, 

2004, in all State implementation plans. 

ø(II) The Administrator, in consultation with the Secretary of 

Energy, shall determine the total number of fuels approved under 

this paragraph as of September 1, 2004, in all State implementation plans and shall publish a list of such fuels, including the 

States and Petroleum Administration for Defense District in which 

they are used, in the Federal Register for public review and comment no later than 90 days after enactment. 

ø(III) The Administrator shall remove a fuel from the list published under subclause (II) if a fuel ceases to be included in a State 

implementation plan or if a fuel in a State implementation plan is 

identical to a Federal fuel formulation implemented by the Administrator, but the Administrator shall not reduce the total number 

of fuels authorized under the list published under subclause (II). 

ø(IV) Subclause (I) shall not limit the Administrator’s authority 

to approve a control or prohibition respecting any new fuel under 

this paragraph in a State implementation plan or revision to a 

State implementation plan if such new fuel— ø(aa) completely replaces a fuel on the list published under 

subclause (II); or 

ø(bb) does not increase the total number of fuels on the list 

published under subclause (II) as of September 1, 2004. 

In the event that the total number of fuels on the list published 

under subclause (II) at the time of the Administrator’s consideration of a control or prohibition respecting a new fuel is lower than 

the total number of fuels on such list as of September 1, 2004, the 

Administrator may approve a control or prohibition respecting a 

new fuel under this subclause if the Administrator, after consultation with the Secretary of Energy, publishes in the Federal Register after notice and comment a finding that, in the Administrator’s judgment, such control or prohibition respecting a new fuel 

will not cause fuel supply or distribution interruptions or have a 

significant adverse impact on fuel producibility in the affected area 

or contiguous areas. 

ø(V) The Administrator shall have no authority under this paragraph, when considering any particular State’s implementation 

plan or a revision to that State’s implementation plan, to approve 

61 

any fuel unless that fuel was, as of the date of such consideration, 

approved in at least one State implementation plan in the applicable Petroleum Administration for Defense District. However, the 

Administrator may approve as part of a State implementation plan 

or State implementation plan revision a fuel with a summertime 

Reid Vapor Pressure of 7.0 psi. In no event shall such approval by 

the Administrator cause an increase in the total number of fuels 

on the list published under subclause (II).¿ 

(viii)(I) The Administrator, in coordination with the Secretary of 

Energy (hereinafter in this clause referred to as the ‘‘Secretary’’), 

shall identify and publish in the Federal Register, within 12 months 

after the enactment of this subclause and after notice and opportunity for public comment, a list of 6 gasoline and diesel fuel blends 

to be used in States that have not received a waiver under section 

209(b) of this Act or any State dependent on refineries in such State 

for gasoline or diesel fuel supplies. The list shall be referred to as 

the ‘‘Federal Fuels List’’ and shall include one Federal diesel fuel, 

one alternative diesel fuel blend approved under this subparagraph 

before enactment of this subclause, one conventional gasoline for 

ozone attainment areas, one reformulated gasoline (RFG) meeting 

the requirements of subsection (k), and 2 additional gasoline blends 

with Reid vapor pressure (RVP) controls for use in ozone nonattainment areas of varying degrees of severity. None of the fuel blends 

identified under this subclause shall control fuel sulfur or toxics levels beyond levels required by regulations of the Administrator. 

(II) Gasoline and diesel fuel blends shall be included on the Federal Fuels List based on the Administrator’s analysis of their ability 

to reduce ozone emissions to assist States in attaining established 

ozone standards under this Act, and on an analysis by the Secretary 

that the adoption of the Federal Fuels List will not result in a reduction in supply or in producibility, including that caused by a reduction in domestic refining capacity triggered by this clause. In the 

event the Secretary concludes that adoption of the Federal Fuels 

List will result in a reduction in supply or in producibility, the Administrator and the Secretary shall report that conclusion to Congress, and suspend implementation of this clause. The Administrator and the Secretary shall conduct the study required under section 1541(c) of the Energy Policy Act of 2005 on the timetable required in that section to provide Congress with legislative recommendations for modifications to the proposed Federal Fuels List 

only if the Secretary concludes that adoption of the Federal Fuels 

List will result in a reduction in supply or in producibility. 

(III) Upon publication of the Federal Fuels List, the Administrator shall have no authority, when considering a State implementation plan or State implementation plan revision, to approve under 

this subparagraph any fuel included in such plan or plan revision 

if the fuel proposed is not one of the fuels included on the Federal 

Fuels List; or to approve such plan or revision unless, after consultation with the Secretary, the Administrator publishes in the 

Federal Register, after notice and opportunity for public comment, 

a finding that, in the Administrator’s judgment, such revisions to 

newly adopt one of the fuels included on the Federal Fuels List will 

not cause fuel supply or distribution interruptions or have a significant adverse impact on fuel producibility in the affected area or contiguous area. The Administrator’s findings shall include an assessVerDate Aug 31 2005 09:45 Oct 07, 2005 Jkt 049006 PO 00000 Frm 00061 Fmt 6659 Sfmt 6603 E:\HR\OC\HR244P1.XXX HR244P1
62 

ment of reasonably foreseeable supply distribution emergencies that 

could occur in the affected area or contiguous area and how adoption of the particular fuel revision would effect supply opportunities 

during reasonably foreseeable supply distribution emergencies. 

(IV) The Administrator, in consultation with the Secretary, shall 

develop a plan to harmonize the currently approved fuel blends in 

State implementation plans with the blends included on the Federal 

Fuels List and shall promulgate implementing regulations for this 

plan not later than 18 months after enactment of this subclause. 

This harmonization shall be fully implemented by the States by December 31, 2008. 

ø(VI)¿ (V) Nothing in this clause shall be construed to have any 

effect regarding any available authority of States to require the use 

of any fuel additive registered in accordance with subsection (b), including any fuel additive registered in accordance with subsection 

(b) after the enactment of this subclause. 

* * * * * * * 

TITLE III—GENERAL 

* * * * * * * 

DEFINITIONS

SEC. 302. When used in this Act— (a) * * * 

* * * * * * * 

(aa) PHYSICAL CHANGE, OR CHANGE IN THE METHOD OF OPER- ATION OF EXISTING EMISSIONS UNIT.—For purposes of parts C and 

D of this title, the term ‘‘physical change, or change in the method 

of operation of,’’ as applied to an existing emissions unit, means a ‘‘modification’’ as defined in paragraphs (a), (b), (c), (e), and (h) of 

title 40 of the Code of Federal Regulations, section 60.14 (as in effect 

on September 22, 2005), except that paragraph (h) shall apply to all 

industrial categories and paragraph (e)(1) shall include all repairs 

and replacements covered by section 51.166(y) of title 40 of the Code 

of Federal Regulations (as in effect on December 31, 2004). 

* * * * * * * 

SECTION 5 OF THE ACT OF OCTOBER 18, 1977 

(Public Law 95–136) 

AN ACT To authorize appropriations for fiscal year 1978 to carry out the Marine 

Mammal Protection Act of 1972. 

SEC. 5. (a) * * * 

(b) Notwithstanding any other provision of law, on and after the 

date of enactment of this section, no officer, employee, or other official of the Federal Government shall, or shall have authority to, 

issue, renew, grant, or otherwise approve any permit, license, or 

other authority for constructing, renovating, modifying, or otherwise altering a terminal, dock, or other facility in, on, or immediately adjacent to, or affecting the navigable waters of Puget 

Sound, or any other navigable waters in the State of Washington 

east of Port Angeles, which will or may result in any increase in 

63 

the volume of crude oil capable of being handled at any such facility (measured as of the date of enactment of this section), other 

than oil to be refined øfor consumption in the State of Washington¿. 

SECTION 116 OF THE ALASKA NATURAL GAS PIPELINE 

ACT 

SEC. 116. LOAN GUARANTEES. 

(a) AUTHORITY.—(1) * * * 

* * * * * * * 

(4) The Secretary shall not enter into an agreement under paragraph (1) or (2) after the date that is 24 months after the date of 

enactment of the Gasoline for America’s Security Act of 2005 if the 

State of Alaska has not entered into an agreement pursuant to Alaska Stranded Gas Development Act which in good faith contractually 

binds the parties to deliver North Slope natural gas to markets via 

the proposed Alaska Natural Gas Pipeline. 

* * * * * * * 

NATURAL GAS ACT 

* * * * * * * 

NECESSITY FOR REGULATION OF NATURAL GAS COMPANIES

SECTION 1. (a) * * * 

(b) The provisions of this Act shall apply to the transportation of 

natural gas in interstate commerce, to the sale in interstate commerce of natural gas for resale for ultimate public consumption for 

domestic, commercial, industrial, or any other use, and to natural 

gas companies engaged in such transportation or sale, and to the 

importation or exportation of natural gas in foreign commerce and 

to persons engaged in such importation or exportation, but shall 

not apply to any other transportation or sale of natural gas or to 

the local distribution of natural gas or to the facilities used for such 

distribution or to the production or, except as provided in section 

4(g), gathering of natural gas. 

* * * * * * * 

RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES

SEC. 4. (a) * * * 

* * * * * * * 

(g)(1) For the purposes of this subsection—

(A) the term ‘‘gas service provider’’ means an entity that operates a facility located in the outer Continental Shelf that is used 

to move natural gas on or across the outer Continental Shelf; 

and 

(B) the term ‘‘outer Continental Shelf’’ has the meaning given 

that term in section 2(a) of the Outer Continental Shelf Lands 

Act (43 U.S.C. 1331(a)). 

64 

(2) All gas service providers shall submit to the Commission annually the conditions of service for each shipper served, consisting 

of— (A) the full legal name of the shipper receiving service; 

(B) a notation of shipper affiliation; 

(C) the type of service provided; 

(D) primary receipt points; 

(E) primary delivery points; 

(F) rates between each pair of points; and 

(G) other conditions of service deemed relevant by the gas 

service provider. 

(3) This subsection shall not apply to— (A) a gas service company that serves exclusively a single entity (either itself or one other party), until such time as— (i) the gas service provider agrees to serve a second shipper; or 

(ii) a determination is made that the gas service provider’s denial of a request for service is unjustified; 

(B) a gas service provider that serves exclusively shippers 

with ownership interests in both the pipeline operated by the 

gas service provider and the gas produced from a field or fields 

connected to a single pipeline, until such time as— (i) the gas service provider offers to serve a nonowner 

shipper; or 

(ii) a determination is made that the gas service provider’s denial of a request for service is unjustified; 

(C) service rendered over facilities that feed into a facility 

where natural gas is first collected, separated, dehydrated, or 

otherwise processed; and 

(D) gas service providers’ facilities and service regulated by 

the Commission under section 7 of this Act. 

(4) When a gas service provider subject to this subsection alters 

its affiliates, customers, rates, conditions of service, or facilities, 

within any calendar quarter, it must then file with the Commission, 

on the first business day of the subsequent quarter, a revised report 

describing the status of its services and facilities. 

* * * * * * * 

SECTION 553 OF THE NATIONAL ENERGY 

CONSERVATION POLICY ACT 

SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS. 

(a) * * * 

* * * * * * * 

(d) SPECIFIC PRODUCTS.—(1) * * * 

* * * * * * * 

(3) The head of an agency shall procure the most energy efficient 

and cost-effective light bulbs or other electrical lighting products, 

consistent with safety considerations, for use in that agency’s facilities and buildings. 

* * * * * * * 

65 

ENERGY POLICY AND CONSERVATION ACT 

* * * * * * * 

TITLE I—MATTERS RELATED TO DOMESTIC SUPPLY 

AVAILABILITY 

* * * * * * * 

PART B—STRATEGIC PETROLEUM RESERVE

* * * * * * * 

DRAWDOWN AND SALE OF PETROLEUM PRODUCTS

SEC. 161. (a) * * * 

* * * * * * * 

(e)(1) * * * 

* * * * * * * 

(3) Any contract under which petroleum products are sold under 

this section shall include a requirement that the person or entity 

that acquires the petroleum products agrees—

(A) not to resell the petroleum products before the products 

are refined; and 

(B) to refine the petroleum products primarily for consumption in the United States. 

* * * * * * * 

PART D—NORTHEAST HOME HEATING OIL RESERVE

ESTABLISHMENT

SEC. 181. (a) Notwithstanding any other provision of this Act, the 

Secretary may establish, maintain, and operate in the Northeast a 

Northeast Home Heating Oil Reserve. A Reserve established under 

this part is not a component of the Strategic Petroleum Reserve established under part B of this title. A Reserve established under 

this part shall contain no more than ø2 million barrels¿ 5 million 

barrels of petroleum distillate. 

* * * * * * * 

(66) 

ADDITIONAL VIEWS 

ADDITIONAL VIEWS OF REPRESENTATIVES GENE GREEN 

AND CHARLES A. GONZALEZ 

We opposed H.R. 3893, the ‘‘Gasoline for America’s Security Act 

of 2005’’, because it would do little if anything to solve the energy 

problems highlighted by Hurricanes Katrina and Rita. In addition, 

the flawed process that brought this bill before the Committee is 

not one that we can endorse as a means to produce thoughtful legislation that addresses real problems. 

Refinery capacity is an issue that both Democrats and Republicans are properly concerned about and one that the Congress 

should examine thoroughly. Our current capacity issues, however, 

were years in the making and cannot be solved by a series of 

‘‘quick fixes.’’ Sweeping changes to public health and environmental 

laws without the benefit of hearings or due legislative process will 

only lead to the kind of protracted and contentious debate that we 

experienced during the Committee markup—without addressing 

the real need to increase refinery capacity. 

With regard to the high gasoline prices the Nation saw after 

Hurricane Katrina, H.R. 3893, as amended during the markup, 

purports to address part of the problem through a price-gouging 

provision of dubious merit that would represent a rollback of some 

of the existing authorities of the Federal Trade Commission. This 

is hardly a position that we can support. 

Democrats offered a sensible substitute during the markup that 

addressed price-gouging and refinery capacity, and we would be 

willing to work with our Republican colleagues to perfect that legislation. But we did not support H.R. 3893, or the process that produced it. 

GENE GREEN. CHARLES A. GONZALEZ. 

(67) 

DISSENTING VIEWS 

DISSENTING VIEWS OF REPRESENTATIVES JOHN D. DINGELL, HENRY A. WAXMAN, EDWARD J. MARKEY, RICK 

BOUCHER, EDOLPHUS TOWNS, FRANK PALLONE, JR., 

SHERROD BROWN, BART GORDON, BOBBY L. RUSH, ANNA 

G. ESHOO, BART STUPAK, ELIOT L. ENGEL, ALBERT R. 

WYNN, TED STRICKLAND, DIANA DEGETTE, LOIS CAPPS, 

MICHAEL F. DOYLE, TOM ALLEN, JIM DAVIS, JAN 

SCHAKOWSKY, HILDA L. SOLIS, JAY INSLEE, TAMMY 

BALDWIN, AND MIKE ROSS 

We oppose H.R. 3893, the ‘‘Gasoline for America’s Security Act 

of 2005’’. The bill will do nothing to lower gasoline and other fuel 

prices. It will do nothing to deal with the problems found in the 

aftermath of Hurricanes Katrina and Rita. Despite new regulatory 

subsidies to a refining industry making record profits, it is unlikely 

to increase refinery capacity. It includes a panoply of unrelated 

provisions, mainly designed to reduce public health and environmental protections. And all of this was done through a deeply 

flawed process that included no legislative hearings and limited 

time for consideration. 

We offered an answer to the awful rise in gasoline prices and the 

projected increases in home heating oil, natural gas, and propane 

prices this winter, as well as dealing with refinery problems identified in the wake of hurricanes. Unfortunately our alternative was 

defeated on a straight party-line vote. 

The bill will do nothing to deal with high gasoline and other fuel 

prices 

The only provision in the bill which even purports to deal with 

high gasoline prices is totally ineffective and represents a rollback 

of some of the existing authorities of the Federal Trade Commission (FTC). The so-called price gouging provision appears directed 

toward small gas station owners. According to a recent analysis of 

price increases at the pump published in the Washington Post, 

however, margins at gas stations increased by less than one cent 

per gallon, less than a 5 percent increase. 

The major increase in prices at the pump were at the refinery 

level, where gasoline prices have increased by 71 cents, or 255 percent. While there is some question over whether the bill’s provisions even cover these refineries, the bill’s penalty provisions ensure that its provisions are meaningless. 

In the first known case of a legislative provision limiting the 

court’s ability to calculate civil penalties for a violation of the FTC 

Act, the bill limits penalties to any person for price gouging to 

$11,000 per day. So even if a company such as Exxon Mobil, with 

68 

profits in the last quarter of $7.62 billion (or more than $84 million 

per day), the maximum find would be $11,000 per day, less than 

one-hundredth of one percent of profits. 

The provision lacks real enforcement authority since it does not 

allow for state attorneys general to enforce the Federal law. Nor 

does it make market manipulation a cause of action. Finally, the 

provision fails to cover other fuels. The Energy Information Administration (EIA) has forecast natural gas prices to rise by 71 percent 

in the Midwest but natural gas, along with home heating oil and 

propane, are not even covered under the proposal. 

Despite new subsidies to a refining industry making record profits, 

it is unlikely to increase refinery capacity 

The bill resurrects some old proposals that were discarded in the 

recently passed Energy Policy Act of 2005, adds some new subsidies to oil companies, and repeals some provisions of the recently 

passed Act. All of the proposals are based upon an unproven and 

flawed assumption that environmental laws have thwarted the 

building of refineries. 

The bill’s refinery provisions provide a new fast track authority 

for permitting refineries that removes court decisions from State or 

local district courts to the Federal Court of Appeals in the District 

of Columbia. The standard for judicial review appears to permit the 

overturning of State or Federal actions to block refinery siting, but 

does not appear to provide for the overturning of actions that permit refinery siting. In addition, the bill provides a new ‘‘regulatory 

insurance subsidy’’ that could put taxpayers on the hook for unlimited damages if a refinery is stalled in litigation or must meet new 

regulatory standards. The bill would give away Federal lands and 

closed military bases to oil companies to build refineries, without 

allowing any public input. The bill even has a provision that would 

require litigants, such as States and localities, to pay for the oil 

company’s litigation costs should the company prevail in a lawsuit, 

but would not provide for the company to pay the opponents of a 

refinery its costs even if they successfully prove that the refinery 

siting violates Federal law. 

While the Committee has never held hearings on these proposals, 

or conducted any serious investigations into the reasons the oil industry has closed more than 30 refineries in the past three decades, most evidence, including studies by the Government Accountability Office (GAO), suggests that the reasons relate to economic 

considerations, not environmental laws. In the only case of a company seeking a new refinery (in Arizona), a permit was granted in 

1992, but the company chose not to build on the site for financial 

reasons. After taking no action for nearly 10 years, the company 

submitted a new permit application and then decided to move to 

a new site. After submitting its last permit application in July of 

2004, the company was awarded a permit by the Environmental 

Protection Agency (EPA) in less than a year. 

It appears that a more likely answer, found both by GAO and 

other investigations, is that refinery margins were traditionally 

low, and by removing capacity from the market, margins could 

grow. We know that refinery margins are now at an all-time high, 

69 

and new regulatory subsidies and special treatment for this industry are at best a dubious policy. 

We are also particularly concerned by a provision of the bill that 

would allow the President to designate closed military sites for use 

as a refinery. The provision provides no opportunity for public 

input into the decision. At a minimum, it could preclude a local 

community from making decisions to transform the site into an economically useful area for at least an additional two years. 

On September 14, 2005, Ranking Member Dingell sent a letter 

to EPA about how the provisions of the Energy Policy Act of 2005 

to coordinate permitting of refineries were working, but no response was provided. We may never find out, because the bill even 

repeals these provisions. He also sent a letter on September 15, 

2005, to Secretary of Energy Bodman requesting information on 

the status of the 30 refineries that have been closed over the past 

10 years, as well as an analysis of which closed military bases, if 

any, were suitable for a refinery. This letter too remains unanswered. 

In short, the bill heaps large new subsidies on industry in the 

form of regulatory relief without any record that these provisions 

will work, and without any record on whether the recently enacted 

law already solves perceived problems. 

The bill includes a panoply of unrelated provisions, mainly designed to reduce environmental protection 

The bill inappropriately uses the catastrophes of Hurricanes 

Katrina and Rita to enact changes to environmental and other laws 

that are totally unrelated to either high fuel prices or damages 

from the hurricanes. 

Among the provisions of the bill is a codification of the Administration’s controversial New Source Review regulations, with an expansion to cover all industries, not just energy industries. Another 

provision known as ‘‘bump-up’’ relates to delays in compliance 

under the Clean Air Act. Other provisions change the regulation 

over natural gas offshore gathering pipelines. Another provision arbitrarily establishes a limit on six types of gasoline and diesel. 

Regardless of our views of the merits of any of these provisions, 

none has been subjected to serious consideration in hearings in this 

committee. Repeated questions of counsel on these provisions indicated a lack of full understanding of the implications of these provisions, or even in some cases, the rationale. 

The bill is a product of a deeply-flawed process that included no legislative hearings and limited time for consideration 

Were this emergency legislation, such as near term help for the 

hurricane victims, we would be ready to act quickly. This bill, however, is not such a bill, a fact conceded by the chairman when he 

stated during debate that this legislation ‘‘is also a generic energy 

bill.’’ No matter what you label it, the impacts on such matters as 

energy supplies and refinery construction would likely be a decade 

or more away. 

Unfortunately, the bill was considered under a lightning fast 

process that did not include a single legislative hearing. The bill 

was unveiled on Friday night at 10:00 p.m., leaving Members two 

70 

business days to evaluate it, and formulate amendments, prior to 

its consideration on Wednesday. Ranking Member Dingell along 

with Subcommittee Ranking Members Boucher and Solis requested 

legislative hearings on the matter, but the request was ignored. 

At the Wednesday markup Members were informed that the 

markup would consist of just a single day. The markup began at 

8:00 a.m. and continued until midnight. During the course of the 

markup Members asked questions concerning the provisions of the 

bill that could not be answered. 

If for no other reason, this bill should be rejected for its utter 

lack of a legislative record. 

Despite the lack of time for consideration of the bill, we offered a 

thoughtful alternative that addressed the problems of high fuel 

prices and refinery problems identified in the aftermath of the 

hurricanes 

The Democratic substitute for the first time gave explicit authority to the FTC to stop price gouging, not just for gasoline and diesel, but for natural gas, home heating oil, and propane. The substitute provided for enhanced civil penalties equal to three times 

the amount of unjust profits gained or up to $3 million. Penalties 

would be put toward the Low-Income Home Energy Assistance Program. Market manipulation would be explicitly outlawed. State attorneys general would be empowered to enforce the Federal law. 

The provision explicitly allowed State price gouging laws to continue in effect. In addition, the substitute called for the FTC to set 

rules for market transparency, and to protect the public from anticompetitive behavior. The Secretary of Energy would be directed to 

review preparedness of the oil industry for natural disasters, terrorist attacks, and other supply disruptions. 

The Democratic substitute also responded to a real problem revealed by the hurricanes. The Strategic Petroleum Reserve (SPR), 

designed to protect us from an energy supply disruption, was of 

limited use due to the damage to refineries to process the crude oil. 

The substitute would establish a Strategic Refinery Reserve (SRR) 

patterned after the SPR. The Secretary of Energy would be directed to establish the SRR either by building new refineries or reopening previously closed facilities. The SRR would be designed to 

produce 5 percent of the demand for gasoline. 

During normal times the SRR would operate to meet the needs 

of the Federal fleet, including the Department of Defense. During 

supply disruptions the refined products would be made available 

for public consumption. The SRR would ensure that Federal fleet 

and military needs would be met at all times; ramping up to full 

production would be eased by keeping the refineries operating at 

a reduced level at all times; and production for the Federal uses 

would free up additional supply, decreasing price pressures. 

The Democratic substitute was defeated on a straight party-line 

vote. 

Conclusion 

H.R. 3893 should be defeated. It is the product of a flawed process, will not alleviate high prices at the pump or heating costs in 

the winter, and will not provide the reserve refining capacity that 

71 

the hurricanes showed is badly needed. It represents an attempt by 

the bill’s proponents to use the tragedy of the hurricanes to rush 

through an agenda unrelated to the problems those hurricanes 

posed and implicating key public health and environmental protections. The Democratic alternative would provide relief to consumers 

and protection against future supply disruptions, but it fell victim 

to the Republican agenda. 

JOHN D. DINGELL. 

HENRY A. WAXMAN. 

EDWARD J. MARKEY. 

RICK BOUCHER. 

ED TOWNS. 

FRANK PALLONE, JR. 

SHERROD BROWN. 

BART GORDON. 

BOBBY RUSH. 

ANNA G. ESHOO. 

BART STUPAK. 

ELIOT L. ENGEL. 

ALBERT R. WYNN. 

TED STRICKLAND. 

DIANA DEGETTE. 

LOIS CAPPS. 

MICHAEL DOYLE. 

TOM ALLEN. 

JIM DAVIS. 

JAN SCHAKOWSKY. 

HILDA L. SOLIS. 

JAY INSLEE. 

TAMMY BALDWIN. 

MIKE ROSS. 

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