II 

109TH CONGRESS 

1ST SESSION S. 1973 

To provide an immediate Federal income tax rebate to help taxpayers with 

higher fuel costs, to express the sense of the Senate regarding full 

funding of LIHEAP, and to provide consumer protections against fuel 

price gouging, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 8, 2005 

Ms. STABENOW introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To provide an immediate Federal income tax rebate to help 

taxpayers with higher fuel costs, to express the sense 

of the Senate regarding full funding of LIHEAP, and 

to provide consumer protections against fuel price 

gouging, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Energy Tax Rebate 

5 Act of 2005’’. 
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1 TITLE I—ENERGY TAX REBATE 

2 SEC. 101. ENERGY TAX REBATE. 

3 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

4 Internal Revenue Code of 1986 (relating to rules of special 

5 application in the case of abatements, credits, and re6 funds) is amended by adding at the end the following new 

7 section: 

8 ‘‘SEC. 6430. ENERGY TAX REBATE. 

9 ‘‘(a) GENERAL RULE.—Except as otherwise provided 

10 in this section, each individual shall be treated as having 

11 made a payment against the tax imposed by chapter 1 for 

12 the taxable year beginning in 2005 in an amount equal 

13 to the lesser of— 

14 ‘‘(1) the amount of the taxpayer’s liability for 

15 tax for such taxpayer’s preceding taxable year, or 

16 ‘‘(2) $500. 

17 ‘‘(b) LIABILITY FOR TAX.—For purposes of this sec18 tion, the liability for tax for any taxable year shall be the 

19 excess (if any) of— 

20 ‘‘(1) the sum of— 

21 ‘‘(A) the taxpayer’s regular tax liability 

22 (within the meaning of section 26(b)) for the 

23 taxable year, 
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1 ‘‘(B) the tax imposed by section 55(a) with 

2 respect to such taxpayer for the taxable year, 

3 and 

4 ‘‘(C) the taxpayer’s social security taxes 

5 (within the meaning of section 24(d)(2)) for the 

6 taxable year, over 

7 ‘‘(2) the sum of the credits allowable under part 

8 IV of subchapter A of chapter 1 (other than the 

9 credits allowable under subpart C thereof, relating to 

10 refundable credits) for the taxable year. 

11 ‘‘(c) TAXABLE INCOME LIMITATION.— 

12 ‘‘(1) IN GENERAL.—If the taxable income of the 

13 taxpayer for the preceding taxable year exceeds the 

14 maximum taxable income in the table under sub15 section (a), (b), (c), or (d) of section 1, whichever 

16 is applicable, to which the 25 percent rate applies, 

17 the dollar amount otherwise determined under sub18 section (a) for such taxpayer shall be reduced (but 

19 not below zero) by the amount of the excess. 

20 ‘‘(2) CHANGE IN RETURN STATUS.—In the case 

21 of married individuals filing a joint return for the 

22 taxable year who did not file such a joint return for 

23 the preceding taxable year, paragraph (1) shall be 

24 applied by reference to the taxable income of both 

25 such individuals for the preceding taxable year. 
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1 ‘‘(d) DATE PAYMENT DEEMED MADE.— 

2 ‘‘(1) IN GENERAL.—The payment provided by 

3 this section shall be deemed made on the date of the 

4 enactment of the Energy Tax Rebate Act of 2005. 

5 ‘‘(2) REMITTANCE OF PAYMENT.—The Sec6 retary shall remit to each taxpayer the payment de7 scribed in paragraph (1) not later than the date 

8 which is 30 days after the date specified in para9 graph (1). 

10 ‘‘(e) CERTAIN PERSONS NOT ELIGIBLE.—This sec11 tion shall not apply to— 

12 ‘‘(1) any individual with respect to whom a de13 duction under section 151 is allowable to another 

14 taxpayer for a taxable year beginning in the cal15 endar year in which such individual’s taxable year 

16 begins, 

17 ‘‘(2) any estate or trust, or 

18 ‘‘(3) any nonresident alien individual.’’. 

19 (b) CONFORMING AMENDMENT.—Section 1324(b)(2) 

20 of title 31, United States Code, is amended by inserting 

21 before the period ‘‘, or enacted by the Energy Tax Rebate 

22 Act of 2005’’. 

23 (c) CLERICAL AMENDMENT.—The table of sections 

24 for subchapter B of chapter 65 of the Internal Revenue 
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1 Code of 1986 is amended by adding at the end the fol2 lowing new item: 

‘‘Sec. 6430. Energy tax rebate.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on the date of the enactment 

5 of this Act. 

6 TITLE II—LOW-INCOME HOME 

7 ENERGY ASSISTANCE 

8 SEC. 201. SENSE OF THE SENATE REGARDING FULL FUND9 ING FOR THE LOW-INCOME HOME ENERGY 

10 ASSISTANCE PROGRAM. 

11 It is the sense of the Senate that Congress should 

12 appropriate $5,100,000,000 for fiscal year 2006 and each 

13 subsequent fiscal year for the Low-Income Home Energy 

14 Assistance Program, under section 2602(b) of the Low15 Income Home Energy Assistance Act of 1981. 

16 TITLE III—CONSUMER 

17 PROTECTIONS 

18 SEC. 301. UNFAIR OR DECEPTIVE ACTS OR PRACTICE IN 

19 COMMERCE RELATED TO PRICING OF PETRO20 LEUM PRODUCTS. 

21 (a) SALES TO CONSUMERS AT UNCONSCIONABLE

22 PRICE.— 

23 (1) IN GENERAL.—It is unlawful for any person 

24 to sell crude oil, gasoline, or petroleum distillates at 

25 a price that— 
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1 (A) is unconscionably excessive; or 

2 (B) indicates the seller is taking unfair ad3 vantage of circumstances to increase prices un4 reasonably. 

5 (2) FACTORS CONSIDERED.—In determining 

6 whether a violation of paragraph (1) has occurred, 

7 there shall be taken into account, among other fac8 tors, whether— 

9 (A) the amount charge represents a gross 

10 disparity between the price fo the crude oil, gas11 oline, or petroleum distillate sold and the price 

12 at which it was offered for sale in the usual 

13 course of the seller’s business immediately prior 

14 to the energy emergency; or 

15 (B) the amount charged grossly exceeds 

16 the price at which the same or similar crude oil, 

17 gasoline, or petroleum distillate was readily ob18 tainable by other purchasers in the area to 

19 which the declaration applies. 

20 (3) MITIGATING FACTORS.—In determining 

21 whether a violation of paragraph (1) has occurred, 

22 there also shall be taken into account, among other 

23 factors, the price that would reasonably equate sup24 ply and demand in a competitive and freely func25 tioning market and whether the price at which the 
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1 crude oil, gasoline, or petroleum distillate was sold 

2 reasonably reflects additional costs, not within the 

3 control fo the seller, that were paid or incurred by 

4 the seller. 

5 (b) PROHIBITION AGAINST GEOGRAPHIC PRICE-SET6 TING AND TERRITORIAL RESTRICTIONS.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), it is unlawful for any person to— 

9 (A) set different prices for gasoline or pe10 troleum distillates for different geographic loca11 tions; or 

12 (B) implement a territorial restriction with 

13 respect to gasoline or petroleum distillates. 

14 (2) EXCEPTIONS.—A person may set different 

15 prices for gasoline or petroleum distillates for dif16 ferent geographic locations or implement territorial 

17 restrictions with respect to gasoline or petroleum 

18 distillates only if the price differences or restrictions 

19 are sufficiently justified by— 

20 (A) differences in the cost of retail space 

21 where the gasoline or petroleum distillate is 

22 sold; 

23 (B) differences in the cost of transpor24 tation of gasoline or petroleum distillates from 

25 the refinery to the retail location; 
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1 (C) differences in the cost of storage of 

2 gasoline or petroleum distillates at the retail lo3 cation; or 

4 (D) differences in the formulation of the 

5 gasoline or petroleum distillates sold. 

6 (c) FALSE PRICING INFORMATION.—It is unlawful 

7 for any person to report information related to the whole8 sale price of crude oil, gasoline, or petroleum distillates 

9 to the Federal Trade Commission if— 

10 (1) that person knew, or reasonably should have 

11 known, the information to be false or misleading; 

12 (2) the information was required by law to be 

13 reported; and 

14 (3) the person intended the false or misleading 

15 data to affect data compiled by that department or 

16 agency for statistical or analytical purpose with re17 spect to the market for crude oil, gasoline, or petro18 leum distillates. 

19 SEC. 302. ENFORCEMENT UNDER FEDERAL TRADE COMMIS20 SION ACT. 

21 (a) ENFORCEMENT BY COMMISSION.—This title shall 

22 be enforced by the Federal Trade Commission. In enforc23 ing section 301(a) of this title, the Commission shall give 

24 priority to enforcement actions concerning companies with 

25 total United States wholesale or retail sales of crude oil, 
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1 gasoline, and petroleum distillates in excess of 

2 $500,000,000 per year but shall not exclude enforcement 

3 actions against companies with total United States whole4 sale sales of $500,000,000 or less per year. 

5 (b) VIOLATION IS UNFAIR OR DECEPTIVE ACT OR

6 PRACTICE.—The violation of any provision of this title 

7 shall be treated as an unfair or deceptive act or practice 

8 proscribed under a rule issued under section 18(a)(1)(B) 

9 of the Federal Trade Commission Act (15 U.S.C. 

10 57a(a)(1)(B)). 

11 SEC. 303. ENFORCEMENT BY STATE ATTORNEYS GENERAL. 

12 (a) IN GENERAL.—A State, as parens patriae, may 

13 bring a civil action on behalf of its residents in an appro14 priate district court of the United States to enforce the 

15 provisions of section 301(a), or to impose the civil pen16 alties authorized by section 304 for violations of section 

17 301(a), whenever the attorney general of the State has 

18 reason to believe that the interests of the residents of the 

19 State have been or are being threatened by such violation. 

20 (b) NOTICE.—The State shall serve written notice to 

21 the Commission of any civil action under subsection (a) 

22 prior to initiating such civil action. The notice shall in23 clude a copy of the complaint to be filed to initiate such 

24 civil action, except that if it is not feasible for the State 
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1 to provide such prior notice, the State shall provide such 

2 notice immediately upon instituting such civil action. 

3 (c) AUTHORITY TO INTERVENE.—Upon receiving the 

4 notice required by subsection (b), the Commission may in5 tervene in such civil action and upon intervening— 

6 (1) be heard on all matters arising in such civil 

7 action; and 

8 (2) file petitions for appeal of a decision in such 

9 civil action. 

10 (d) CONSTRUCTION.—For purposes of bringing any 

11 civil action under subsection (a), nothing in this section 

12 shall prevent the attorney general of a State from exer13 cising the powers conferred on the attorney general by the 

14 laws of such State to conduct investigations or to admin15 ister oaths or affirmations or to compel the attendance 

16 of witnesses or the production of documentary and other 

17 evidence. 

18 (e) VENUE; SERVICE OF PROCESS.—In a civil action 

19 brought under subsection (a)— 

20 (1) the venue shall be a judicial district in 

21 which— 

22 (A) the defendant operates; 

23 (B) the defendant was authorized to do 

24 business; or 
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1 (C) where the defendant in the civil action 

2 is found; 

3 (2) process may be served without regard to the 

4 territorial limits of the district or of the State in 

5 which the civil action is instituted; and 

6 (3) a person who participated with the defend7 ant in an alleged violation that is being litigated in 

8 the civil action may be joined in the civil action with9 out regard to the residence of the person. 

10 (f) LIMITATION ON STATE ACTION WHILE FEDERAL

11 ACTION IS PENDING.—If the Commission has instituted 

12 a civil action or an administrative action for violation of 

13 this title, no State attorney general, or official or agency 

14 of a State, may bring an action under this subsection dur15 ing the pendency of that action against any defendant 

16 named in the complain of the Commission or the other 

17 agency for any violation of this title alleged in the com18 plaint. 

19 (g) ENFORCEMENT OF STATE LAW.—Nothing con20 tained in this section shall prohibit an authorized State 

21 official from proceeding in state court to enforce a civil 

22 or criminal statute of such State. 

23 SEC. 304. PENALTIES. 

24 (a) CIVIL PENALTY.— 
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1 (1) IN GENERAL.—In addition to any penalty 

2 applicable under the Federal Trade Commission 

3 Act— 

4 (A) any person who violates section 301(c) 

5 of this title is punishable by a civil penalty of 

6 not more than $1,000,000; and 

7 (B) any person who violates section 301(a) 

8 or 301(b) of this title is punishable by a civil 

9 penalty of not more than $3,000,000. 

10 (2) METHOD OF ASSESSMENT.—The penalties 

11 provided by paragraph (1) shall be assessed in the 

12 same manner as civil penalties imposed under sec13 tion 5 of the Federal Trade Commission Act (15 

14 U.S.C. 45). 

15 (3) MULTIPLE OFFENSES; MITIGATING FAC16 TORS.—In assessing the penalty provided by sub17 section (a)— 

18 (A) each day of a continuing violation shall 

19 be considered a separate violation; and 

20 (B) the Commission shall take into consid21 eration the seriousness of the violation and the 

22 efforts of the person committing the violation to 

23 remedy the harm caused by the violation in a 

24 timely manner. 
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1 (b) CRIMINAL PENALTY.—Violation of section 301(a) 

2 of this title is punishable by a fine of not more than 

3 $1,000,000, imprisonment for not more than 5 years, or 

4 both. 

5 SEC. 305. EFFECT ON OTHER LAWS. 

6 (a) OTHER AUTHORITY OF COMMISSION.—Nothing 

7 in this title shall be construed to limit or affect in any 

8 way the Commission’s authority to bring enforcement ac9 tions or take any other measure under the Federal Trade 

10 Commission Act (15 U.S.C. 41 et seq.) or any other provi11 sion of law. 

12 (b) STATE LAW.—Nothing in this title preempts any 

13 State law. 

14 SEC. 306. MARKET TRANSPARENCY FOR CRUDE OIL, GASO15 LINE, AND PETROLEUM DISTILLATES. 

16 (a) IN GENERAL.—The Federal Trade Commission 

17 shall facilitate price transparency in markets for the sale 

18 of crude oil and essential petroleum products at wholesale, 

19 having due regard for the public interest, the integrity of 

20 those markets, fair competition, and the protection of con21 sumers. 

22 (b) MARKETPLACE TRANSPARENCY.— 

23 (1) DISSEMINATION OF INFORMATION.—In car24 rying out this section, the Commission shall provide 

25 by rule for the dissemination, on a timely basis, of 
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1 information about the availability and prices of 

2 wholesale crude oil, gasoline, and petroleum dis3 tillates to the Commission, States, wholesale buyers 

4 and sellers, and the public. 

5 (2) PROTECTION OF PUBLIC FROM ANTI6 COMPETITIVE ACTIVITY.—In determining the infor7 mation to be made available under this section and 

8 time to make the information available, the Commis9 sion shall seek to ensure that consumers and com10 petitive markets are protected from the adverse ef11 fects of potential collusion or other anticompetitive 

12 behaviors that can be facilitated by untimely public 

13 disclosure of transaction-specific information. 

14 (3) PROTECTION OF MARKET MECHANISMS.— 

15 The Commission shall withhold from public disclo16 sure under this section any information the Commis17 sion determines would, if disclosed, be detrimental to 

18 the operation of an effective market or jeopardize se19 curity. 

20 (c) INFORMATION SOURCES.— 

21 (1) IN GENERAL.—In carrying out subsection 

22 (b), the Commission may— 

23 (A) obtain information from any market 

24 participant; and 
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1 (B) rely on entities other than the Com2 mission to receive and make public the informa3 tion, subject to the disclosure rules in sub4 section (b)(3). 

5 (2) PUBLISHED DATA.—In carrying out this 

6 section, the Commission shall— 

7 (A) consider the degree of price trans8 parency provided by existing price publishers 

9 and providers of trade processing services; and 

10 (B) rely on such publishers and services to 

11 the maximum extent practicable. 

12 (3) ELECTRONIC INFORMATION SYSTEMS.— 

13 (A) IN GENERAL.—The Commission may 

14 establish an electronic information system if the 

15 Commission determines that existing price pub16 lications are not adequately providing price dis17 covery or market transparency. 

18 (B) ELECTRONIC INFORMATION FILING

19 REQUIREMENTS.—Nothing in this section af20 fects any electronic information filing require21 ments in effect under this title as of the date 

22 of enactment of this Act. 

23 (4) DE MINIMUS EXCEPTION.—The Commission 

24 may not require entities who have a de minimus 
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1 market presence to comply with the reporting re2 quirements of this section. 

3 (d) COOPERATION WITH OTHER FEDERAL AGEN4 CIES.— 

5 (1) MEMORANDUM OF UNDERSTANDING.—Not 

6 later 180 days after the date of enactment of this 

7 Act, the Commission shall conclude a memorandum 

8 of understanding with the Commodity Futures Trad9 ing Commission and other appropriate agencies (if 

10 applicable) relating to information sharing, which 

11 shall include provisions— 

12 (A) ensuring that information requests to 

13 markets within the respective jurisdiction of 

14 each agency are properly coordinated to mini15 mize duplicative information requests; and 

16 (B) regarding the treatment of proprietary 

17 trading information. 

18 (2) CFTC JURISDICTION.—Nothing in this sec19 tion limits or affects the exclusive jurisdiction of the 

20 Commodity Futures Trading Commission under the 

21 Commodity Exchange Act (7 U.S.C. 1 et seq.). 

22 (e) RULEMAKING.—Not later than 180 days after the 

23 date of enactment of this Act, the Commission shall ini24 tiate a rulemaking proceeding to establish such rules as 
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1 the Commission determines to be necessary and appro2 priate to carry out this section. 

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