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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1500 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 1500

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2007

 Mr. DeFazio introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
  Ways and Means, Oversight and Government Reform, Judiciary, Natural 
    Resources, and Foreign Affairs, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Gasoline Price 
Stabilization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Strategic petroleum reserve drawdown.
Sec. 3. Minimum inventory levels.
Sec. 4. Ban on exporting of Alaskan oil.
Sec. 5. Sense of Congress regarding the Organization of the Petroleum 
                            Exporting Countries and the World Trade 
                            Organization.
Sec. 6. Windfall profits tax and credit for purchasing fuel-efficient 
                            American-made passenger vehicles.
Sec. 7. Merger moratoriums.
Sec. 8. Petroleum Industry Concentration and Market Power Review 
                            Commission.
Sec. 9. Increased average fuel economy standards for passenger 
                            automobiles and light trucks.
Sec. 10. Fuel economy of the Federal fleet of vehicles.

SEC. 2. STRATEGIC PETROLEUM RESERVE DRAWDOWN.

    (a) Drawdowns Authorized to Address State or Regional Economic 
Harm.--Section 161(d)(2)(C) of the Energy Policy and Conservation Act 
(42 U.S.C. 6241(d)(2)(C)) is amended by inserting ``, or on a State or 
regional economy'' after ``national economy''.
    (b) Drawdowns Authorized to Combat Anti-Competitive Conduct.--
Section 161(d) of the Energy Policy and Conservation Act (42 U.S.C. 
6241(d)) is further amended by adding at the end the following new 
paragraph:
    ``(3)(A) For purposes of this section, in addition to the 
circumstances set forth in section 3(8) and in paragraph (2) of this 
subsection, a severe energy supply interruption exists if the President 
determines that--
            ``(i) there is a significant reduction in supply that--
                    ``(I) is of significant scope and duration; and
                    ``(II) has caused a significant increase in the 
                price of petroleum products;
            ``(ii) the increase in price is likely to cause a 
        significant adverse impact on the national economy, or on a 
        State or regional economy; and
            ``(iii) the reduction in supply is substantially caused by 
        conduct that lessens competition (or tends to create a 
        monopoly) by--
                    ``(I) at least one foreign country or international 
                entity; or
                    ``(II) at least one producer, refiner, or marketer 
                of petroleum products.
    ``(B) Proceeds from the sale of petroleum drawn down pursuant to a 
Presidential determination under subparagraph (A) shall--
            ``(i) be deposited in the SPR Petroleum Account established 
        under section 167; and
            ``(ii) be used only for the purposes specified in such 
        section.''.
    (c) Reporting and Consultation Requirements.--When the price of a 
barrel of crude oil exceeds $50 (in constant 2005 United States 
dollars) on the New York Mercantile Exchange for a period greater than 
14 days, the President, through the Secretary of Energy, shall, not 
later than 30 days after the end of the 14-day period, submit to 
Congress a report that--
            (1) states the results of a comprehensive review of the 
        causes and potential consequences of the price increase;
            (2) provides an estimate of the likely duration of the 
        price increase, based on analyses and forecasts of the Energy 
        Information Administration;
            (3) provides an analysis of the effects of the price 
        increase on the cost of gasoline at the wholesale and retail 
        levels; and
            (4) states whether, and provides a specific rationale for 
        why, the President does or does not support the drawdown and 
        distribution of a specified amount of oil from the Strategic 
        Petroleum Reserve.
    (d) General Accounting Office Study.--The Comptroller General of 
the United States shall, not later than one year after the date of the 
enactment of this Act, submit to Congress a review of the drawdown 
authority of the President with respect to the Strategic Petroleum 
Reserve. Such review shall address--
            (1) how and why the authority has changed over time;
            (2) under what circumstances Presidents have actually 
        exercised the authority;
            (3) what the impact on oil prices was as a result of the 
        exercising of the presidential authority; and
            (4) the implications of expanding the drawdown authority 
        beyond the severe energy supply interruption standard described 
        in section 3(8) or 161(d) of the Energy Policy and Conservation 
        Act (42 U.S.C. 6202(8), 6241(d)), by--
                    (A) allowing the release of oil as a regular 
                hedging tool for oil companies;
                    (B) allowing such companies to tap the Strategic 
                Petroleum Reserve as necessary to dampen price shocks; 
                and
                    (C) requiring such companies to replace the oil 
                (and additional barrels) at some predetermined time in 
                the future.

SEC. 3. MINIMUM INVENTORY LEVELS.

    (a) Establishing Minimum Levels.--The Secretary of Energy shall 
establish minimum inventory levels that producers, refiners, and 
marketers of crude oil and petroleum products must maintain in order to 
limit the impact unexpected supply disruptions have on prices at the 
wholesale and retail levels.
    (b) Regional Variations.--For purposes of subsection (a), the 
minimum inventory levels shall take into account regional variations in 
supply and demand, and market structure.
    (c) Administrative Procedures.--For purposes of subsection (a), the 
Secretary may perform the following procedures:
            (1) Different industry segments.--Set varying levels for 
        each segment of the oil industry as the Secretary determines 
        appropriate.
            (2) Different products.--Set different levels for the 
        various crude oil and petroleum products, including gasoline, 
        home heating oil, and jet fuel.
            (3) Seasonal adjustment.--Adjust minimum inventory levels 
        to reflect seasonal adjustments.

SEC. 4. BAN ON EXPORTING OF ALASKAN OIL.

    (a) Repeal of Provision Authorizing Exports.--Section 28(s) of the 
Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
    (b) Reimposition of Prohibition on Crude Oil Exports.--Section 7(d) 
of the Export Administration Act of 1979 (50 U.S.C. App. 2406(d)) shall 
be effective as of the date of the enactment of this Act, and those 
provisions of the Export Administration Act of 1979 (including sections 
11 and 12) shall apply to the extent necessary to carry out such 
section 7(d), notwithstanding section 20 of such Act and 
notwithstanding any other provision of law that would otherwise allow 
the export of oil to which such section 7(d) applies.

SEC. 5. SENSE OF CONGRESS REGARDING THE ORGANIZATION OF THE PETROLEUM 
              EXPORTING COUNTRIES AND THE WORLD TRADE ORGANIZATION.

    (a) Findings.--Congress makes the following findings:
            (1) No free market exists in oil production because of 
        collusion among large oil-producing countries.
            (2) The Organization of the Petroleum Exporting Countries 
        (in this section referred to as ``OPEC'') and other oil-
        producing countries have repeatedly agreed to coordinated 
        cutbacks in production, thus manipulating world oil markets, 
        resulting in de facto price fixing.
            (3) Such manipulation led to the highest price per barrel 
        of oil in nearly a decade, substantial increases in consumer 
        prices for items such as home heating oil and gasoline, and 
        continued price volatility.
            (4) Rising oil prices greatly harm consumers, farmers, 
        small businesses, and manufacturers, increase the likelihood of 
        inflation, increase the cost of conducting interstate and 
        international commerce, and pose a strong threat to continued 
        economic growth.
            (5) Article XI of the General Agreement on Tariffs and 
        Trade of 1994 (in this section referred to as ``GATT'') 
        prohibits members of the World Trade Organization (in this 
        section referred to as ``WTO'') from setting quantitative 
        restrictions on the import or export of resources or products 
        across their borders; specifically the language reads: ``No 
        prohibitions or restrictions other than duties, taxes or other 
        charges, whether made effective through quotas, import or 
        export licenses or other measures, shall be instituted or 
        maintained by any contracting party on the importation of any 
        product of the territory of any other contracting party or on 
        the exportation or sale for export of any product destined for 
        the territory of any other contracting party.''.
            (6) The precise meaning of such article XI was spelled out 
        in a GATT Panel Report issued in 1988 entitled ``Japan--Trade 
        in Semi-conductors'', which notes, ``. . . this wording [in 
        article XI] was comprehensive: it applied to all measures 
        instituted or maintained by a contracting party prohibiting or 
        restricting the importation, exportation, or sale for export of 
        products other than measures that take the form of duties, 
        taxes, or other charges. . . . This wording indicated clearly 
        that any measure instituted or maintained by a contracting 
        party which restricted the exportation or sale for export of 
        products was covered by this provision, irrespective of the 
        legal status of the measure.''.
            (7) Oil production restrictions clearly qualify as a 
        ``quantitative restriction'' based on the original WTO rules 
        and the 1988 GATT panel report, which certify that only 
        ``duties, taxes, or other charges'' are allowable, not pacts 
        among countries to limit production of a product for export.
            (8) Article XX of GATT, which sets out a series of 
        exceptions to article XI, notes that none of the exceptions is 
        valid if it is ``applied in a manner which would constitute . . 
        . a disguised restriction on international trade'', a phrase 
        which describes production restrictions of OPEC.
            (9) Of the 12 OPEC countries, eight are members of the WTO 
        (Angola, Kuwait, Indonesia, Nigeria, Qatar, Venezuela, Saudi 
        Arabia, and United Arab Emirates), and four have observer 
        status and have applied to join the WTO (Algeria, Libya, Iran, 
        Iraq).
            (10) In addition, of the remaining large oil-producing 
        nations, Mexico, Norway, and Oman are members of the WTO, and 
        Russia has applied for membership.
            (11) Given the substantial WTO membership and pending 
        membership of oil-producing countries, filing a complaint would 
        likely have an immediate impact on the current and future 
        behavior of these countries.
    (b) Filing of Complaint.--The President shall instruct the United 
States Trade Representative to file a complaint in the World Trade 
Organization against oil-producing countries for violating their 
obligations under the rules of that organization.

SEC. 6. WINDFALL PROFITS TAX AND CREDIT FOR PURCHASING FUEL-EFFICIENT 
              AMERICAN-MADE PASSENGER VEHICLES.

    (a) Windfall Profits Tax.--
            (1) In general.--Subtitle E of the Internal Revenue Code of 
        1986 (relating to alcohol, tobacco, and certain other excise 
        taxes) is amended by adding at the end thereof the following 
        new chapter:

              ``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; removal price; adjusted base price; 
                            qualified investment.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any integrated oil company (as 
defined in section 291(b)(4)) an excise tax equal to the excess of--
            ``(1) the amount equal to 50 percent of the windfall profit 
        from all barrels of taxable crude oil removed from the property 
        during each taxable year, over
            ``(2) the amount of qualified investment by such company 
        during such taxable year.
    ``(b) Fractional Part of Barrel.--In the case of a fraction of a 
barrel, the tax imposed by subsection (a) shall be the same fraction of 
the amount of such tax imposed on the whole barrel.
    ``(c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil.

``SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; ADJUSTED BASE PRICE; 
              QUALIFIED INVESTMENT.

    ``(a) General Rule.--For purposes of this chapter, the term 
`windfall profit' means the excess of the removal price of the barrel 
of taxable crude oil over the adjusted base price of such barrel.
    ``(b) Removal Price.--For purposes of this chapter--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `removal price' means the amount for which 
        the barrel of taxable crude oil is sold.
            ``(2) Sales between related persons.--In the case of a sale 
        between related persons, the removal price shall not be less 
        than the constructive sales price for purposes of determining 
        gross income from the property under section 613.
            ``(3) Oil removed from property before sale.--If crude oil 
        is removed from the property before it is sold, the removal 
        price shall be the constructive sales price for purposes of 
        determining gross income from the property under section 613.
            ``(4) Refining begun on property.--If the manufacture or 
        conversion of crude oil into refined products begins before 
        such oil is removed from the property--
                    ``(A) such oil shall be treated as removed on the 
                day such manufacture or conversion begins, and
                    ``(B) the removal price shall be the constructive 
                sales price for purposes of determining gross income 
                from the property under section 613.
            ``(5) Property.--The term `property' has the meaning given 
        such term by section 614.
    ``(c) Adjusted Base Price Defined.--
            ``(1) In general.--For purposes of this chapter, the term 
        `adjusted base price' means $50 for each barrel of taxable 
        crude oil plus an amount equal to--
                    ``(A) such base price, multiplied by
                    ``(B) the inflation adjustment for the calendar 
                year in which the taxable crude oil is removed from the 
                property.
        The amount determined under the preceding sentence shall be 
        rounded to the nearest cent.
            ``(2) Inflation adjustment.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the inflation adjustment for any calendar year after 
                2008 is the percentage by which--
                            ``(i) the implicit price deflator for the 
                        gross national product for the preceding 
                        calendar year, exceeds
                            ``(ii) such deflator for the calendar year 
                        ending December 31, 2007.
                    ``(B) First revision of price deflator used.--For 
                purposes of subparagraph (A), the first revision of the 
                price deflator shall be used.
    ``(d) Qualified Investment.--For purposes of this chapter--
            ``(1) In general.--The term `qualified investment' means 
        any amount paid or incurred with respect to--
                    ``(A) section 263(c) costs,
                    ``(B) qualified refinery property (as defined in 
                section 179C(c) and determined without regard to any 
                termination date),
                    ``(C) any qualified facility described in paragraph 
                (1), (2), (3), or (4) of section 45(d) (determined 
                without regard to any placed in service date),
                    ``(D) any facility for the production of alcohol 
                used as a fuel (within the meaning of section 40) or 
                biodiesel or agri-biodiesel used as a fuel (within the 
                meaning of section 40A).
            ``(2) Section 263(c) costs.--For purposes of this 
        subsection, the term `section 263(c) costs' means intangible 
        drilling and development costs incurred by the taxpayer which 
        (by reason of an election under section 263(c)) may be deducted 
        as expenses for purposes of this title (other than this 
        paragraph). Such term shall not include costs incurred in 
        drilling a nonproductive well.

``SEC. 5898. SPECIAL RULES AND DEFINITIONS.

    ``(a) Withholding and Deposit of Tax.--The Secretary shall provide 
such rules as are necessary for the withholding and deposit of the tax 
imposed under section 5896 on any taxable crude oil.
    ``(b) Records and Information.--Each taxpayer liable for tax under 
section 5896 shall keep such records, make such returns, and furnish 
such information (to the Secretary and to other persons having an 
interest in the taxable crude oil) with respect to such oil as the 
Secretary may by regulations prescribe.
    ``(c) Return of Windfall Profit Tax.--The Secretary shall provide 
for the filing and the time of such filing of the return of the tax 
imposed under section 5896.
    ``(d) Definitions.--For purposes of this chapter--
            ``(1) Producer.--The term `producer' means the holder of 
        the economic interest with respect to the crude oil.
            ``(2) Crude oil.--
                    ``(A) In general.--The term `crude oil' includes 
                crude oil condensates and natural gasoline.
                    ``(B) Exclusion of newly discovered oil.--Such term 
                shall not include any oil produced from a well drilled 
                after the date of the enactment of the Gasoline Price 
                Stabilization Act of 2007, except with respect to any 
                oil produced from a well drilled after such date on any 
                proven oil or gas property (within the meaning of 
                section 613A(c)(6)(A)).
            ``(3) Barrel.--The term `barrel' means 42 United States 
        gallons.
    ``(e) Adjustment of Removal Price.--In determining the removal 
price of oil from a property in the case of any transaction, the 
Secretary may adjust the removal price to reflect clearly the fair 
market value of oil removed.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.
    ``(g) Termination.--This section shall not apply to taxable crude 
oil removed after the date which is 3 years after the date of the 
enactment of this section.''.
            (2) Clerical amendment.--The table of chapters for subtitle 
        E of the Internal Revenue Code of 1986 is amended by adding at 
        the end the following new item:

             ``Chapter 56. Windfall Profit on Crude Oil.''.

            (3) Deductibility of windfall profit tax.--The first 
        sentence of section 164(a) of the Internal Revenue Code of 1986 
        (relating to deduction for taxes) is amended by inserting after 
        paragraph (5) the following new paragraph:
            ``(6) The windfall profit tax imposed by section 5896.''.
            (4) Effective date.--
                    (A) In general.--The amendments made by this 
                section shall apply to crude oil removed after the date 
                of the enactment of this Act, in taxable years ending 
                after such date.
                    (B) Transitional rules.--For the period ending 
                December 31, 2007, the Secretary of the Treasury or the 
                Secretary's delegate shall prescribe rules relating to 
                the administration of chapter 56 of the Internal 
                Revenue Code of 1986. To the extent provided in such 
                rules, such rules shall supplement or supplant for such 
                period the administrative provisions contained in 
                chapter 56 of such Code (or in so much of subtitle F of 
                such Code as relates to such chapter 56).
    (b) Credit for Purchasing Fuel-Efficient American-Made Passenger 
Vehicles.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        nonrefundable personal credits) is amended by inserting after 
        section 25D the following new section:

``SEC. 25E. PURCHASE OF FUEL-EFFICIENT AMERICAN-MADE PASSENGER 
              VEHICLES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the cost of any qualified passenger 
vehicle purchased by the taxpayer during the taxable year.
    ``(b) Maximum Credit.--The credit allowed by this section for the 
taxable year shall not exceed--
            ``(1) $3,000 in the case of a qualified passenger vehicle 
        not described in paragraph (2) or (3),
            ``(2) $4,500 in the case of a qualified passenger vehicle 
        the fuel economy of which is--
                    ``(A) in the case of a truck or sport utility 
                vehicle, at least 45 miles per gallon but less than 55 
                miles per gallon, and
                    ``(B) in any other case, at least 55 miles per 
                gallon but less than 65 miles per gallon, and
            ``(3) $6,000 in the case of a qualified passenger vehicle 
        the fuel economy of which is--
                    ``(A) in the case of a truck or sport utility 
                vehicle, at least 55 miles per gallon, and
                    ``(B) in any other case, at least 65 miles per 
                gallon.
    ``(c) Qualified Passenger Vehicle.--For purposes of this section--
            ``(1) In general.--The term `qualified passenger vehicle' 
        means any automobile (as defined in section 4064(b)(1))--
                    ``(A) which is purchased after the date of the 
                enactment of this section,
                    ``(B) which is assembled in the United States by 
                individuals employed under a collective bargaining 
                agreement,
                    ``(C) the original use of which begins with the 
                taxpayer,
                    ``(D) substantially all of the use of which is for 
                personal, nonbusiness purposes, and
                    ``(E) the fuel economy of such automobile is--
                            ``(i) at least 35 miles per gallon in the 
                        case of a truck or sport utility vehicle, and
                            ``(ii) at least 45 miles per gallon in any 
                        other case.
            ``(2) Fuel economy.--Fuel economy shall be determined in 
        accordance with section 4064.
    ``(d) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(2) Property used outside united states not qualified.--
        No credit shall be allowed under subsection (a) with respect to 
        any property referred to in section 50(b)(1).''.
            (2) Clerical amendment.--The table of sections for such 
        subpart A is amended by inserting after the item relating to 
        section 25D the following new item:

``Sec. 25E. Purchase of fuel-efficient American-made passenger 
                            vehicles.''.
            (3) Effective date.--The amendments made by this section 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.

SEC. 7. MERGER MORATORIUMS.

    (a) Prohibition on Certain Mergers in Oil Industry.--Section 7 of 
the Clayton Act (15 U.S.C. 18) is amended by adding at the end the 
following:
    ``No person engaged in commerce in the petroleum industry may be 
acquired by another person unless the acquisition is likely to result 
in a net benefit to consumers by maintaining or increasing 
competition.''.
    (b) Moratorium on Large Petroleum and Cruel Oil Mergers.--
            (1) One-year moratorium.--During the one-year period 
        beginning on the date of the enactment of this Act and except 
        as provided in paragraph (2), with respect to petroleum and 
        crude oil products no explorer, producer, transporter, refiner, 
        or wholesale distributor of such products, or operator of a 
        retail gasoline outlet, with annual net sales or total assets 
        of more than $10,000,000 shall merge or acquire, directly or 
        indirectly, any voting securities or assets of any other such 
        explorer, producer, transporter, refiner, distributor, or 
        operator with annual net sales or total assets of more than 
        $10,000,000.
            (2) Waiver authority.--The Attorney General may waive the 
        moratorium imposed by paragraph (1) only under extraordinary 
        circumstances, such as insolvency or similar financial distress 
        of one of the affected parties.

SEC. 8. PETROLEUM INDUSTRY CONCENTRATION AND MARKET POWER REVIEW 
              COMMISSION.

    (a) Establishment of Commission.--There is established a commission 
to be known as the ``Petroleum Industry Concentration and Market Power 
Review Commission'' (in this section referred to as the 
``Commission'').
    (b) Duties of the Commission.--
            (1) Study on petroleum industry.--The Commission shall 
        study the nature, causes, and consequences of concentration of 
        ownership in the exploration, production, transportation, 
        refinement, wholesale distribution, and retail sale of crude 
        oil and petroleum products in the United States in the broadest 
        possible terms.
            (2) Issues to be addressed.--The study shall include an 
        examination of the following matters:
                    (A) The nature and extent of the concentration 
                described in paragraph (1).
                    (B) Current trends in such concentration and what 
                such industry is likely to look like in the near term 
                and longer term future.
                    (C) The effect of such concentration on the 
                exploration, production, transportation, refinement, 
                wholesale distribution, and retail sale of crude oil 
                and petroleum products.
                    (D) The effect of such concentration on prices at 
                the wholesale and retail levels.
                    (E) The effect of such concentration on consumers 
                of petroleum products, including retail consumers, 
                businesses (including fuel dependent industries such as 
                aviation and trucking), and farmers.
                    (F) The relationship between current laws and 
                administrative practices and the support and 
                encouragement of such concentration.
                    (G) Such related matters as the Commission 
                determines to be important.
    (c) Membership of Commission.--
            (1) Composition.--The Commission shall be composed of 12 
        members as follows:
                    (A) Three persons shall be appointed by the 
                President pro tempore of the Senate upon the 
                recommendation of the Majority Leader of the Senate, 
                after consultation with the Chairman of the Committee 
                on Energy and Natural Resources.
                    (B) Three persons shall be appointed by the 
                President pro tempore of the Senate upon the 
                recommendation of the Minority Leader of the Senate, 
                after consultation with the ranking minority member of 
                the Committee on Energy and Natural Resources.
                    (C) Three persons shall be appointed by the Speaker 
                of the House of Representatives, after consultation 
                with the Chairman of the Committee on Energy and 
                Commerce.
                    (D) Three persons shall be appointed by the 
                Minority Leader of the House of Representatives, after 
                consultation with the ranking minority member of the 
                Committee on Energy and Commerce.
            (2) Qualifications of members.--
                    (A) Appointments.--Persons who are appointed under 
                paragraph (1) shall be persons who--
                            (i) have expertise in petroleum economics 
                        and antitrust, or have other pertinent 
                        qualifications or experience relating to 
                        petroleum industries; and
                            (ii) are not officers or employees of the 
                        United States.
                    (B) Other consideration.--Persons who are appointed 
                under paragraph (1) shall--
                            (i) be representative of a broad cross 
                        sector of--
                                    (I) explorers, producers, 
                                transporters, refiners, wholesale 
                                distributors, and retail sellers in the 
                                petroleum industry;
                                    (II) various antitrust perspectives 
                                within the United States; and
                                    (III) consumers, fuel-dependent 
                                businesses, and other interests that 
                                the Secretary considers necessary to 
                                ensure a balanced representation of 
                                perspectives and expertise in the 
                                petroleum industry; and
                            (ii) provide fresh insights to analyzing 
                        the causes and impacts of the concentration of 
                        ownership described in subsection (b)(1).
            (3) Period of appointment and vacancies.--
                    (A) Period of appointment.--Members shall be 
                appointed not later than 60 days after the date of 
                enactment of this Act and the appointment shall be for 
                the life of the Commission.
                    (B) Vacancies.--Any vacancy in the Commission shall 
                not affect its powers, but shall be filled in the same 
                manner as the original appointment.
            (4) Meetings.--
                    (A) In general.--The Commission shall meet at the 
                call of the Chairman.
                    (B) Initial meeting.--Not later than 30 days after 
                the date on which all members of the Commission have 
                been appointed, the Commission shall hold its first 
                meeting.
            (5) Chairman and vice chairman.--The members of the 
        Commission shall elect a chairman and vice chairman from among 
        the members of the Commission.
            (6) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business.
    (d) Final Report.--
            (1) Findings, conclusion, and recommendations of 
        commission.--Not later than 12 months after the date of the 
        initial meeting of the Commission, the Commission shall submit 
        to the President and Congress a final report that contains--
                    (A) the findings and conclusions of the study of 
                the Commission required under subsection (b); and
                    (B) recommendations for addressing any problems 
                identified in such study.
            (2) Separate views.--Any member of the Commission may 
        submit additional findings and recommendations as part of the 
        final report.
    (e) Powers of Commission.--
            (1) Hearings.--The Commission may hold such hearings, sit 
        and act at such times and places, take such testimony, and 
        receive such evidence as the Commission may find advisable to 
        fulfill the requirements of this section. The Commission shall 
        hold at least one hearing in Washington, D.C., and at least 
        four in a variety of geographic regions of the United States.
            (2) Information from federal agencies.--The Commission may 
        secure directly from any Federal department or agency such 
        information as the Commission considers necessary to carry out 
        the provisions of this section. Upon request of the Chairman of 
        the Commission, the head of such department or agency shall 
        furnish such information to the Commission.
            (3) 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 Federal Government.
    (f) Commission Personnel Matters.--
            (1) Compensation of members.--Each member of the Commission 
        shall be compensated at a rate equal to the daily equivalent of 
        the annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which such 
        member is engaged in the performance of the duties of the 
        Commission.
            (2) Travel expenses.--The members of the Commission shall 
        be allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of duties of the Commission.
            (3) Staff.--
                    (A) In general.--The Chairman of the Commission 
                may, without regard to the civil service laws and 
                regulations, appoint and terminate an executive 
                director and such other additional personnel as may be 
                necessary to enable the Commission to perform its 
                duties. The employment of an executive director shall 
                be subject to confirmation by the Commission.
                    (B) Compensation.--The Chairman of the Commission 
                may fix the compensation of the executive director and 
                other personnel without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of title 5, 
                United States Code, relating to classification of 
                positions and General Schedule pay rates, except that 
                the rate of pay for the executive director and other 
                personnel may not exceed the rate payable for level V 
                of the Executive Schedule under section 5316 of such 
                title.
            (4) Detail of government employees.--Upon request of the 
        Chairman, the head of any Federal department or agency may 
        detail any of the personnel of that department or agency to the 
        Commission to assist it in carrying out its duties under this 
        section. Such detail shall be without reimbursement and without 
        interruption or loss of civil service status or privilege.
            (5) Procurement of temporary and intermittent services.--
        The Chairman of the Commission may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code, at rates for individuals which do not exceed the 
        daily equivalent of the annual rate of basic pay prescribed for 
        level V of the Executive Schedule under section 5316 of such 
        title.
    (g) Support Services.--The Administrator of General Services shall 
provide to the Commission on a reimbursable basis such administrative 
support services as the Commission may request.
    (h) Authorization for Appropriations.--There is authorized to be 
appropriated $2,000,000 to carry out the provisions of this section.

SEC. 9. INCREASED AVERAGE FUEL ECONOMY STANDARDS.

    (a) In General.--Section 32902 of title 49, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by striking ``(1) Subject to paragraph (2) of 
                this subsection, the'' and inserting ``The''; and
                    (B) by striking paragraph (2); and
            (2) by redesignating subsections (i) and (j) in order as 
        subsections (k) and (l), and by inserting after subsection (h) 
        the following:
    ``(i) Standards for Model Years After 2009.--The Secretary of 
Transportation shall prescribe by regulation average fuel economy 
standards for automobiles manufactured by a manufacturer in model years 
after model year 2009, that shall--
            ``(1) ensure that the average fuel economy achieved by 
        automobiles (including passenger automobiles) manufactured by a 
        manufacturer in model years after 2017 is no less than 37 miles 
        per gallon, and in model years after 2022 is no less than 40 
        miles per gallon;
            ``(2) ensure that improvements to fuel economy standards do 
        not degrade the safety of automobiles manufactured by a 
        manufacturer; and
            ``(3) maximize the retention of jobs in the automobile 
        manufacturing sector of the United States.
    ``(j) Sized-Based Standards.--The Secretary may establish separate 
standards for different classes of automobiles (including passenger 
automobiles) according to size.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (c)(1) in the first sentence by inserting 
        ``and subsection (i)'' after ``of this subsection''; and
            (2) in subsection (k) (as redesignated by subsection (a)) 
        by striking ``or (g)'' and inserting ``(g), or (i)''.

SEC. 10. FUEL ECONOMY OF THE FEDERAL FLEET OF VEHICLES.

    (a) Baseline Average Fuel Economy.--The head of each executive 
agency shall determine, for each class of vehicles that are in the 
agency's fleet of vehicles in fiscal year 2008, the average fuel 
economy for all of the vehicles in that class that are in the agency's 
fleet of vehicles for that fiscal year. For the purposes of this 
section, the average fuel economy so determined for the agency's 
vehicles in a class of vehicles shall be the baseline average fuel 
economy for the agency's fleet of vehicles in that class.
    (b) Increase of Average Fuel Economy.--The head of an executive 
agency shall manage the procurement of vehicles in each class of 
vehicles for that agency in such a manner that--
            (1) not later than September 30, 2010, the average fuel 
        economy of the new vehicles in the agency's fleet of vehicles 
        in each class of vehicles is not less than three miles per 
        gallon higher than the baseline average fuel economy determined 
        for that class; and
            (2) not later than September 30, 2013, the average fuel 
        economy of the new vehicles in the agency's fleet of vehicles 
        in each class of vehicles is not less than six miles per gallon 
        higher than the baseline average fuel economy determined for 
        that class.
    (c) Calculation of Average Fuel Economy.--Average fuel economy 
shall be calculated for the purposes of this section in accordance with 
guidance which the Secretary of Transportation shall prescribe for the 
implementation of this section.
    (d) Definitions.--
            (1) The term ``class of vehicles'' means a class of 
        vehicles for which an average fuel economy standard is in 
        effect under chapter 329 of title 49, United States Code.
            (2) The term ``executive agency'' has the meaning given the 
        term in section 4(1) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(1)).
            (3) The term ``new vehicle'', with respect to the fleet of 
        vehicles of an executive agency, means a vehicle procured by or 
        for the agency after September 30, 2009.
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