I 

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. 

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

5 ‘‘Gasoline Price Stabilization Act of 2007’’. 

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

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Strategic petroleum reserve drawdown. 

Sec. 3. Minimum inventory levels. 

Sec. 4. Ban on exporting of Alaskan oil. 


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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 Americanmade 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. 

1 SEC. 2. STRATEGIC PETROLEUM RESERVE DRAWDOWN. 

2 (a) DRAWDOWNS AUTHORIZED TO ADDRESS STATE

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

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

5 6241(d)(2)(C)) is amended by inserting ‘‘, or on a State 

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

7 (b) DRAWDOWNS AUTHORIZED TO COMBAT ANTI8 COMPETITIVE CONDUCT.—Section 161(d) of the Energy 

9 Policy and Conservation Act (42 U.S.C. 6241(d)) is fur10 ther amended by adding at the end the following new para11 graph: 

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

13 the circumstances set forth in section 3(8) and in para14 graph (2) of this subsection, a severe energy supply inter15 ruption exists if the President determines that— 

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

17 that— 

18 ‘‘(I) is of significant scope and duration; 

19 and 


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

2 the price of petroleum products; 

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

4 significant adverse impact on the national economy, 

5 or on a State or regional economy; and 

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

7 caused by conduct that lessens competition (or tends 

8 to create a monopoly) by— 

9 ‘‘(I) at least one foreign country or inter10 national entity; or 

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

12 marketer of petroleum products. 

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

14 down pursuant to a Presidential determination under sub15 paragraph (A) shall— 

16 ‘‘(i) be deposited in the SPR Petroleum Ac17 count established under section 167; and 

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

19 such section.’’. 

20 (c) REPORTING AND CONSULTATION REQUIRE21 MENTS.—When the price of a barrel of crude oil exceeds 

22 $50 (in constant 2005 United States dollars) on the New 

23 York Mercantile Exchange for a period greater than 14 

24 days, the President, through the Secretary of Energy, 


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

2 period, submit to Congress a report that— 

3 (1) states the results of a comprehensive review 

4 of the causes and potential consequences of the price 

5 increase; 

6 (2) provides an estimate of the likely duration 

7 of the price increase, based on analyses and fore8 casts of the Energy Information Administration; 

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

10 price increase on the cost of gasoline at the whole11 sale and retail levels; and 

12 (4) states whether, and provides a specific ra13 tionale for why, the President does or does not sup14 port the drawdown and distribution of a specified 

15 amount of oil from the Strategic Petroleum Reserve. 

16 (d) GENERAL ACCOUNTING OFFICE STUDY.—The 

17 Comptroller General of the United States shall, not later 

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

19 submit to Congress a review of the drawdown authority 

20 of the President with respect to the Strategic Petroleum 

21 Reserve. Such review shall address— 

22 (1) how and why the authority has changed 

23 over time; 

24 (2) under what circumstances Presidents have 

25 actually exercised the authority; 


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1 (3) what the impact on oil prices was as a re2 sult of the exercising of the presidential authority; 

3 and 

4 (4) the implications of expanding the drawdown 

5 authority beyond the severe energy supply interrup6 tion standard described in section 3(8) or 161(d) of 

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

8 6202(8), 6241(d)), by— 

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

10 hedging tool for oil companies; 

11 (B) allowing such companies to tap the 

12 Strategic Petroleum Reserve as necessary to 

13 dampen price shocks; and 

14 (C) requiring such companies to replace 

15 the oil (and additional barrels) at some pre16 determined time in the future. 

17 SEC. 3. MINIMUM INVENTORY LEVELS. 

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

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

21 petroleum products must maintain in order to limit the 

22 impact unexpected supply disruptions have on prices at 

23 the wholesale and retail levels. 

24 (b) REGIONAL VARIATIONS.—For purposes of sub25 section (a), the minimum inventory levels shall take into 


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1 account regional variations in supply and demand, and 

2 market structure. 

3 (c) ADMINISTRATIVE PROCEDURES.—For purposes 

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

5 procedures: 

6 (1) DIFFERENT INDUSTRY SEGMENTS.—Set 

7 varying levels for each segment of the oil industry as 

8 the Secretary determines appropriate. 

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

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

12 (3) SEASONAL ADJUSTMENT.—Adjust minimum 

13 inventory levels to reflect seasonal adjustments. 

14 SEC. 4. BAN ON EXPORTING OF ALASKAN OIL. 

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

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

18 (b) REIMPOSITION OF PROHIBITION ON CRUDE OIL

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

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

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

22 provisions of the Export Administration Act of 1979 (in23 cluding sections 11 and 12) shall apply to the extent nec24 essary to carry out such section 7(d), notwithstanding sec25 tion 20 of such Act and notwithstanding any other proviVerDate Aug 31 2005 02:46 Mar 15, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1500.IH H1500

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1 sion of law that would otherwise allow the export of oil 

2 to which such section 7(d) applies. 

3 SEC. 5. SENSE OF CONGRESS REGARDING THE ORGANIZA4 TION OF THE PETROLEUM EXPORTING COUN5 TRIES AND THE WORLD TRADE ORGANIZA6 TION. 

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

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

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

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

17 in de facto price fixing. 

18 (3) Such manipulation led to the highest price 

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

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

23 (4) Rising oil prices greatly harm consumers, 

24 farmers, small businesses, and manufacturers, in25 crease the likelihood of inflation, increase the cost of 


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1 conducting interstate and international commerce, 

2 and pose a strong threat to continued economic 

3 growth. 

4 (5) Article XI of the General Agreement on 

5 Tariffs and Trade of 1994 (in this section referred 

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

7 Trade Organization (in this section referred to as 

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

9 the import or export of resources or products across 

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

11 prohibitions or restrictions other than duties, taxes 

12 or other charges, whether made effective through 

13 quotas, import or export licenses or other measures, 

14 shall be instituted or maintained by any contracting 

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

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

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

20 spelled out in a GATT Panel Report issued in 1988 

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

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

24 maintained by a contracting party prohibiting or re25 stricting the importation, exportation, or sale for exVerDate Aug 31 2005 02:46 Mar 15, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1500.IH H1500

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1 port of products other than measures that take the 

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

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

7 the legal status of the measure.’’. 

8 (7) Oil production restrictions clearly qualify as 

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

10 WTO rules and the 1988 GATT panel report, which 

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

12 are allowable, not pacts among countries to limit 

13 production of a product for export. 

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

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

17 which would constitute . . . a disguised restriction on 

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

20 (9) Of the 12 OPEC countries, eight are mem21 bers of the WTO (Angola, Kuwait, Indonesia, Nige22 ria, Qatar, Venezuela, Saudi Arabia, and United 

23 Arab Emirates), and four have observer status and 

24 have applied to join the WTO (Algeria, Libya, Iran, 

25 Iraq). 


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1 (10) In addition, of the remaining large oil-pro2 ducing nations, Mexico, Norway, and Oman are 

3 members of the WTO, and Russia has applied for 

4 membership. 

5 (11) Given the substantial WTO membership 

6 and pending membership of oil-producing countries, 

7 filing a complaint would likely have an immediate 

8 impact on the current and future behavior of these 

9 countries. 

10 (b) FILING OF COMPLAINT.—The President shall in11 struct the United States Trade Representative to file a 

12 complaint in the World Trade Organization against oil13 producing countries for violating their obligations under 

14 the rules of that organization. 

15 SEC. 6. WINDFALL PROFITS TAX AND CREDIT FOR PUR16 CHASING FUEL-EFFICIENT AMERICAN-MADE 

17 PASSENGER VEHICLES. 

18 (a) WINDFALL PROFITS TAX.— 

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

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

21 and certain other excise taxes) is amended by adding 

22 at the end thereof the following new chapter: 

23 ‘‘CHAPTER 56—WINDFALL PROFITS ON 

24 CRUDE OIL 

‘‘Sec. 5896. Imposition of tax. 


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‘‘Sec. 5897. Windfall profit; removal price; adjusted base price; qualified investment. 

‘‘Sec. 5898. Special rules and definitions. 

1 ‘‘SEC. 5896. IMPOSITION OF TAX. 

2 ‘‘(a) IN GENERAL.—In addition to any other tax im3 posed under this title, there is hereby imposed on any inte4 grated oil company (as defined in section 291(b)(4)) an 

5 excise tax equal to the excess of— 

6 ‘‘(1) the amount equal to 50 percent of the 

7 windfall profit from all barrels of taxable crude oil 

8 removed from the property during each taxable year, 

9 over 

10 ‘‘(2) the amount of qualified investment by such 

11 company during such taxable year. 

12 ‘‘(b) FRACTIONAL PART OF BARREL.—In the case of 

13 a fraction of a barrel, the tax imposed by subsection (a) 

14 shall be the same fraction of the amount of such tax im15 posed on the whole barrel. 

16 ‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 

17 this section shall be paid by the producer of the taxable 

18 crude oil. 

19 ‘‘SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; AD20 JUSTED BASE PRICE; QUALIFIED INVEST21 MENT. 

22 ‘‘(a) GENERAL RULE.—For purposes of this chapter, 

23 the term ‘windfall profit’ means the excess of the removal 


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1 price of the barrel of taxable crude oil over the adjusted 

2 base price of such barrel. 

3 ‘‘(b) REMOVAL PRICE.—For purposes of this chap4 ter— 

5 ‘‘(1) IN GENERAL.—Except as otherwise pro6 vided in this subsection, the term ‘removal price’ 

7 means the amount for which the barrel of taxable 

8 crude oil is sold. 

9 ‘‘(2) SALES BETWEEN RELATED PERSONS.—In 

10 the case of a sale between related persons, the re11 moval price shall not be less than the constructive 

12 sales price for purposes of determining gross income 

13 from the property under section 613. 

14 ‘‘(3) OIL REMOVED FROM PROPERTY BEFORE

15 SALE.—If crude oil is removed from the property be16 fore it is sold, the removal price shall be the con17 structive sales price for purposes of determining 

18 gross income from the property under section 613. 

19 ‘‘(4) REFINING BEGUN ON PROPERTY.—If the 

20 manufacture or conversion of crude oil into refined 

21 products begins before such oil is removed from the 

22 property— 

23 ‘‘(A) such oil shall be treated as removed 

24 on the day such manufacture or conversion be25 gins, and 


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1 ‘‘(B) the removal price shall be the con2 structive sales price for purposes of determining 

3 gross income from the property under section 

4 613. 

5 ‘‘(5) PROPERTY.—The term ‘property’ has the 

6 meaning given such term by section 614. 

7 ‘‘(c) ADJUSTED BASE PRICE DEFINED.— 

8 ‘‘(1) IN GENERAL.—For purposes of this chap9 ter, the term ‘adjusted base price’ means $50 for 

10 each barrel of taxable crude oil plus an amount 

11 equal to— 

12 ‘‘(A) such base price, multiplied by 

13 ‘‘(B) the inflation adjustment for the cal14 endar year in which the taxable crude oil is re15 moved from the property. 

16 The amount determined under the preceding sen17 tence shall be rounded to the nearest cent. 

18 ‘‘(2) INFLATION ADJUSTMENT.— 

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (1), the inflation adjustment for any cal21 endar year after 2008 is the percentage by 

22 which— 

23 ‘‘(i) the implicit price deflator for the 

24 gross national product for the preceding 

25 calendar year, exceeds 


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1 ‘‘(ii) such deflator for the calendar 

2 year ending December 31, 2007. 

3 ‘‘(B) FIRST REVISION OF PRICE DEFLATOR

4 USED.—For purposes of subparagraph (A), the 

5 first revision of the price deflator shall be used. 

6 ‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 

7 chapter— 

8 ‘‘(1) IN GENERAL.—The term ‘qualified invest9 ment’ means any amount paid or incurred with re10 spect to— 

11 ‘‘(A) section 263(c) costs, 

12 ‘‘(B) qualified refinery property (as defined 

13 in section 179C(c) and determined without re14 gard to any termination date), 

15 ‘‘(C) any qualified facility described in 

16 paragraph (1), (2), (3), or (4) of section 45(d) 

17 (determined without regard to any placed in 

18 service date), 

19 ‘‘(D) any facility for the production of al20 cohol used as a fuel (within the meaning of sec21 tion 40) or biodiesel or agri-biodiesel used as a 

22 fuel (within the meaning of section 40A). 

23 ‘‘(2) SECTION 263(c) COSTS.—For purposes of 

24 this subsection, the term ‘section 263(c) costs’ 

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1 curred by the taxpayer which (by reason of an elec2 tion under section 263(c)) may be deducted as ex3 penses for purposes of this title (other than this 

4 paragraph). Such term shall not include costs in5 curred in drilling a nonproductive well. 

6 ‘‘SEC. 5898. SPECIAL RULES AND DEFINITIONS. 

7 ‘‘(a) WITHHOLDING AND DEPOSIT OF TAX.—The 

8 Secretary shall provide such rules as are necessary for the 

9 withholding and deposit of the tax imposed under section 

10 5896 on any taxable crude oil. 

11 ‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 

12 liable for tax under section 5896 shall keep such records, 

13 make such returns, and furnish such information (to the 

14 Secretary and to other persons having an interest in the 

15 taxable crude oil) with respect to such oil as the Secretary 

16 may by regulations prescribe. 

17 ‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec18 retary shall provide for the filing and the time of such 

19 filing of the return of the tax imposed under section 5896. 

20 ‘‘(d) DEFINITIONS.—For purposes of this chapter— 

21 ‘‘(1) PRODUCER.—The term ‘producer’ means 

22 the holder of the economic interest with respect to 

23 the crude oil. 

24 ‘‘(2) CRUDE OIL.— 


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1 ‘‘(A) IN GENERAL.—The term ‘crude oil’ 

2 includes crude oil condensates and natural gas3 oline. 

4 ‘‘(B) EXCLUSION OF NEWLY DISCOVERED

5 OIL.—Such term shall not include any oil pro6 duced from a well drilled after the date of the 

7 enactment of the Gasoline Price Stabilization 

8 Act of 2007, except with respect to any oil pro9 duced from a well drilled after such date on any 

10 proven oil or gas property (within the meaning 

11 of section 613A(c)(6)(A)). 

12 ‘‘(3) BARREL.—The term ‘barrel’ means 42 

13 United States gallons. 

14 ‘‘(e) ADJUSTMENT OF REMOVAL PRICE.—In deter15 mining the removal price of oil from a property in the case 

16 of any transaction, the Secretary may adjust the removal 

17 price to reflect clearly the fair market value of oil removed. 

18 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

19 such regulations as may be necessary or appropriate to 

20 carry out the purposes of this chapter. 

21 ‘‘(g) TERMINATION.—This section shall not apply to 

22 taxable crude oil removed after the date which is 3 years 

23 after the date of the enactment of this section.’’. 

24 (2) CLERICAL AMENDMENT.—The table of 

25 chapters for subtitle E of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the fol2 lowing new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL.’’. 

3 (3) DEDUCTIBILITY OF WINDFALL PROFIT

4 TAX.—The first sentence of section 164(a) of the In5 ternal Revenue Code of 1986 (relating to deduction 

6 for taxes) is amended by inserting after paragraph 

7 (5) the following new paragraph: 

8 ‘‘(6) The windfall profit tax imposed by section 

9 5896.’’. 

10 (4) EFFECTIVE DATE.— 

11 (A) IN GENERAL.—The amendments made 

12 by this section shall apply to crude oil removed 

13 after the date of the enactment of this Act, in 

14 taxable years ending after such date. 

15 (B) TRANSITIONAL RULES.—For the pe16 riod ending December 31, 2007, the Secretary 

17 of the Treasury or the Secretary’s delegate 

18 shall prescribe rules relating to the administra19 tion of chapter 56 of the Internal Revenue Code 

20 of 1986. To the extent provided in such rules, 

21 such rules shall supplement or supplant for 

22 such period the administrative provisions con23 tained in chapter 56 of such Code (or in so 

24 much of subtitle F of such Code as relates to 

25 such chapter 56). 


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1 (b) CREDIT FOR PURCHASING FUEL-EFFICIENT

2 AMERICAN-MADE PASSENGER VEHICLES.— 

3 (1) IN GENERAL.—Subpart A of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code 

5 of 1986 (relating to nonrefundable personal credits) 

6 is amended by inserting after section 25D the fol7 lowing new section: 

8 ‘‘SEC. 25E. PURCHASE OF FUEL-EFFICIENT AMERICAN9 MADE PASSENGER VEHICLES. 

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

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

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

13 the cost of any qualified passenger vehicle purchased by 

14 the taxpayer during the taxable year. 

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

16 section for the taxable year shall not exceed— 

17 ‘‘(1) $3,000 in the case of a qualified passenger 

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

19 ‘‘(2) $4,500 in the case of a qualified passenger 

20 vehicle the fuel economy of which is— 

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

22 vehicle, at least 45 miles per gallon but less 

23 than 55 miles per gallon, and 


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

2 per gallon but less than 65 miles per gallon, 

3 and 

4 ‘‘(3) $6,000 in the case of a qualified passenger 

5 vehicle the fuel economy of which is— 

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

7 vehicle, at least 55 miles per gallon, and 

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

9 per gallon. 

10 ‘‘(c) QUALIFIED PASSENGER VEHICLE.—For pur11 poses of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified pas13 senger vehicle’ means any automobile (as defined in 

14 section 4064(b)(1))— 

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

16 the enactment of this section, 

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

18 States by individuals employed under a collec19 tive bargaining agreement, 

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

21 the taxpayer, 

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

23 is for personal, nonbusiness purposes, and 

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

25 is— 


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

2 case of a truck or sport utility vehicle, and 

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

4 any other case. 

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

6 determined in accordance with section 4064. 

7 ‘‘(d) SPECIAL RULES.— 

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

9 property for which a credit is allowable under sub10 section (a) shall be reduced by the amount of such 

11 credit. 

12 ‘‘(2) PROPERTY USED OUTSIDE UNITED STATES

13 NOT QUALIFIED.—No credit shall be allowed under 

14 subsection (a) with respect to any property referred 

15 to in section 50(b)(1).’’. 

16 (2) CLERICAL AMENDMENT.—The table of sec17 tions for such subpart A is amended by inserting 

18 after the item relating to section 25D the following 

19 new item: 

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

20 (3) EFFECTIVE DATE.—The amendments made 

21 by this section shall apply to taxable years ending 

22 after the date of the enactment of this Act. 


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1 SEC. 7. MERGER MORATORIUMS. 

2 (a) PROHIBITION ON CERTAIN MERGERS IN OIL IN3 DUSTRY.—Section 7 of the Clayton Act (15 U.S.C. 18) 

4 is amended by adding at the end the following: 

5 ‘‘No person engaged in commerce in the petroleum 

6 industry may be acquired by another person unless the 

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

8 by maintaining or increasing competition.’’. 

9 (b) MORATORIUM ON LARGE PETROLEUM AND

10 CRUEL OIL MERGERS.— 

11 (1) ONE-YEAR MORATORIUM.—During the one12 year period beginning on the date of the enactment 

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

14 with respect to petroleum and crude oil products no 

15 explorer, producer, transporter, refiner, or wholesale 

16 distributor of such products, or operator of a retail 

17 gasoline outlet, with annual net sales or total assets 

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

19 directly or indirectly, any voting securities or assets 

20 of any other such explorer, producer, transporter, re21 finer, distributor, or operator with annual net sales 

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

23 (2) WAIVER AUTHORITY.—The Attorney Gen24 eral may waive the moratorium imposed by para25 graph (1) only under extraordinary circumstances, 


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1 such as insolvency or similar financial distress of one 

2 of the affected parties. 

3 SEC. 8. PETROLEUM INDUSTRY CONCENTRATION AND 

4 MARKET POWER REVIEW COMMISSION. 

5 (a) ESTABLISHMENT OF COMMISSION.—There is es6 tablished a commission to be known as the ‘‘Petroleum 

7 Industry Concentration and Market Power Review Com8 mission’’ (in this section referred to as the ‘‘Commis9 sion’’). 

10 (b) DUTIES OF THE COMMISSION.— 

11 (1) STUDY ON PETROLEUM INDUSTRY.—The 

12 Commission shall study the nature, causes, and con13 sequences of concentration of ownership in the ex14 ploration, production, transportation, refinement, 

15 wholesale distribution, and retail sale of crude oil 

16 and petroleum products in the United States in the 

17 broadest possible terms. 

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

19 shall include an examination of the following mat20 ters: 

21 (A) The nature and extent of the con22 centration described in paragraph (1). 

23 (B) Current trends in such concentration 

24 and what such industry is likely to look like in 

25 the near term and longer term future. 


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1 (C) The effect of such concentration on the 

2 exploration, production, transportation, refine3 ment, wholesale distribution, and retail sale of 

4 crude oil and petroleum products. 

5 (D) The effect of such concentration on 

6 prices at the wholesale and retail levels. 

7 (E) The effect of such concentration on 

8 consumers of petroleum products, including re9 tail consumers, businesses (including fuel de10 pendent industries such as aviation and truck11 ing), and farmers. 

12 (F) The relationship between current laws 

13 and administrative practices and the support 

14 and encouragement of such concentration. 

15 (G) Such related matters as the Commis16 sion determines to be important. 

17 (c) MEMBERSHIP OF COMMISSION.— 

18 (1) COMPOSITION.—The Commission shall be 

19 composed of 12 members as follows: 

20 (A) Three persons shall be appointed by 

21 the President pro tempore of the Senate upon 

22 the recommendation of the Majority Leader of 

23 the Senate, after consultation with the Chair24 man of the Committee on Energy and Natural 

25 Resources. 


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1 (B) Three persons shall be appointed by 

2 the President pro tempore of the Senate upon 

3 the recommendation of the Minority Leader of 

4 the Senate, after consultation with the ranking 

5 minority member of the Committee on Energy 

6 and Natural Resources. 

7 (C) Three persons shall be appointed by 

8 the Speaker of the House of Representatives, 

9 after consultation with the Chairman of the 

10 Committee on Energy and Commerce. 

11 (D) Three persons shall be appointed by 

12 the Minority Leader of the House of Represent13 atives, after consultation with the ranking mi14 nority member of the Committee on Energy and 

15 Commerce. 

16 (2) QUALIFICATIONS OF MEMBERS.— 

17 (A) APPOINTMENTS.—Persons who are ap18 pointed under paragraph (1) shall be persons 

19 who— 

20 (i) have expertise in petroleum eco21 nomics and antitrust, or have other perti22 nent qualifications or experience relating to 

23 petroleum industries; and 

24 (ii) are not officers or employees of 

25 the United States. 


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1 (B) OTHER CONSIDERATION.—Persons 

2 who are appointed under paragraph (1) shall— 

3 (i) be representative of a broad cross 

4 sector of— 

5 (I) explorers, producers, trans6 porters, refiners, wholesale distribu7 tors, and retail sellers in the petro8 leum industry; 

9 (II) various antitrust perspectives 

10 within the United States; and 

11 (III) consumers, fuel-dependent 

12 businesses, and other interests that 

13 the Secretary considers necessary to 

14 ensure a balanced representation of 

15 perspectives and expertise in the pe16 troleum industry; and 

17 (ii) provide fresh insights to analyzing 

18 the causes and impacts of the concentra19 tion of ownership described in subsection 

20 (b)(1). 

21 (3) PERIOD OF APPOINTMENT AND VACAN22 CIES.— 

23 (A) PERIOD OF APPOINTMENT.—Members 

24 shall be appointed not later than 60 days after 

25 the date of enactment of this Act and the apVerDate Aug 31 2005 02:46 Mar 15, 2007 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1500.IH H1500

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1 pointment shall be for the life of the Commis2 sion. 

3 (B) VACANCIES.—Any vacancy in the 

4 Commission shall not affect its powers, but 

5 shall be filled in the same manner as the origi6 nal appointment. 

7 (4) MEETINGS.— 

8 (A) IN GENERAL.—The Commission shall 

9 meet at the call of the Chairman. 

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

11 days after the date on which all members of the 

12 Commission have been appointed, the Commis13 sion shall hold its first meeting. 

14 (5) CHAIRMAN AND VICE CHAIRMAN.—The 

15 members of the Commission shall elect a chairman 

16 and vice chairman from among the members of the 

17 Commission. 

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

19 the Commission shall constitute a quorum for the 

20 transaction of business. 

21 (d) FINAL REPORT.— 

22 (1) FINDINGS, CONCLUSION, AND REC23 OMMENDATIONS OF COMMISSION.—Not later than 

24 12 months after the date of the initial meeting of 

25 the Commission, the Commission shall submit to the 


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1 President and Congress a final report that con2 tains— 

3 (A) the findings and conclusions of the 

4 study of the Commission required under sub5 section (b); and 

6 (B) recommendations for addressing any 

7 problems identified in such study. 

8 (2) SEPARATE VIEWS.—Any member of the 

9 Commission may submit additional findings and rec10 ommendations as part of the final report. 

11 (e) POWERS OF COMMISSION.— 

12 (1) HEARINGS.—The Commission may hold 

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

14 take such testimony, and receive such evidence as 

15 the Commission may find advisable to fulfill the re16 quirements of this section. The Commission shall 

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

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

19 United States. 

20 (2) INFORMATION FROM FEDERAL AGENCIES.— 

21 The Commission may secure directly from any Fed22 eral department or agency such information as the 

23 Commission considers necessary to carry out the 

24 provisions of this section. Upon request of the Chair25 man of the Commission, the head of such departVerDate Aug 31 2005 02:46 Mar 15, 2007 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1500.IH H1500

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1 ment or agency shall furnish such information to the 

2 Commission. 

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

4 United States mails in the same manner and under 

5 the same conditions as other departments and agen6 cies of the Federal Government. 

7 (f) COMMISSION PERSONNEL MATTERS.— 

8 (1) COMPENSATION OF MEMBERS.—Each mem9 ber of the Commission shall be compensated at a 

10 rate equal to the daily equivalent of the annual rate 

11 of basic pay prescribed for level IV of the Executive 

12 Schedule under section 5315 of title 5, United 

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

14 during which such member is engaged in the per15 formance of the duties of the Commission. 

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

17 Commission shall be allowed travel expenses, includ18 ing per diem in lieu of subsistence, at rates author19 ized for employees of agencies under subchapter I of 

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

21 away from their homes or regular places of business 

22 in the performance of duties of the Commission. 

23 (3) STAFF.— 

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

25 Commission may, without regard to the civil 


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1 service laws and regulations, appoint and termi2 nate an executive director and such other addi3 tional personnel as may be necessary to enable 

4 the Commission to perform its duties. The em5 ployment of an executive director shall be sub6 ject to confirmation by the Commission. 

7 (B) COMPENSATION.—The Chairman of 

8 the Commission may fix the compensation of 

9 the executive director and other personnel with10 out regard to the provisions of chapter 51 and 

11 subchapter III of chapter 53 of title 5, United 

12 States Code, relating to classification of posi13 tions and General Schedule pay rates, except 

14 that the rate of pay for the executive director 

15 and other personnel may not exceed the rate 

16 payable for level V of the Executive Schedule 

17 under section 5316 of such title. 

18 (4) DETAIL OF GOVERNMENT EMPLOYEES.— 

19 Upon request of the Chairman, the head of any Fed20 eral department or agency may detail any of the per21 sonnel of that department or agency to the Commis22 sion to assist it in carrying out its duties under this 

23 section. Such detail shall be without reimbursement 

24 and without interruption or loss of civil service sta25 tus or privilege. 


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1 (5) PROCUREMENT OF TEMPORARY AND INTER2 MITTENT SERVICES.—The Chairman of the Commis3 sion may procure temporary and intermittent serv4 ices under section 3109(b) of title 5, United States 

5 Code, at rates for individuals which do not exceed 

6 the daily equivalent of the annual rate of basic pay 

7 prescribed for level V of the Executive Schedule 

8 under section 5316 of such title. 

9 (g) SUPPORT SERVICES.—The Administrator of Gen10 eral Services shall provide to the Commission on a reim11 bursable basis such administrative support services as the 

12 Commission may request. 

13 (h) AUTHORIZATION FOR APPROPRIATIONS.—There 

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

15 the provisions of this section. 

16 SEC. 9. INCREASED AVERAGE FUEL ECONOMY STANDARDS. 

17 (a) IN GENERAL.—Section 32902 of title 49, United 

18 States Code, is amended— 

19 (1) in subsection (c)— 

20 (A) by striking ‘‘(1) Subject to paragraph 

21 (2) of this subsection, the’’ and inserting 

22 ‘‘The’’; and 

23 (B) by striking paragraph (2); and 


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1 (2) by redesignating subsections (i) and (j) in 

2 order as subsections (k) and (l), and by inserting 

3 after subsection (h) the following: 

4 ‘‘(i) STANDARDS FOR MODEL YEARS AFTER 2009.— 

5 The Secretary of Transportation shall prescribe by regula6 tion average fuel economy standards for automobiles man7 ufactured by a manufacturer in model years after model 

8 year 2009, that shall— 

9 ‘‘(1) ensure that the average fuel economy 

10 achieved by automobiles (including passenger auto11 mobiles) manufactured by a manufacturer in model 

12 years after 2017 is no less than 37 miles per gallon, 

13 and in model years after 2022 is no less than 40 

14 miles per gallon; 

15 ‘‘(2) ensure that improvements to fuel economy 

16 standards do not degrade the safety of automobiles 

17 manufactured by a manufacturer; and 

18 ‘‘(3) maximize the retention of jobs in the auto19 mobile manufacturing sector of the United States. 

20 ‘‘(j) SIZED-BASED STANDARDS.—The Secretary may 

21 establish separate standards for different classes of auto22 mobiles (including passenger automobiles) according to 

23 size.’’. 

24 (b) CONFORMING AMENDMENTS.—Such section is 

25 further amended— 


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1 (1) in subsection (c)(1) in the first sentence by 

2 inserting ‘‘and subsection (i)’’ after ‘‘of this sub3 section’’; and 

4 (2) in subsection (k) (as redesignated by sub5 section (a)) by striking ‘‘or (g)’’ and inserting ‘‘(g), 

6 or (i)’’. 

7 SEC. 10. FUEL ECONOMY OF THE FEDERAL FLEET OF VEHI8 CLES. 

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

10 of each executive agency shall determine, for each class 

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

12 year 2008, the average fuel economy for all of the vehicles 

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

14 that fiscal year. For the purposes of this section, the aver15 age fuel economy so determined for the agency’s vehicles 

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

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

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

19 head of an executive agency shall manage the procurement 

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

21 a manner that— 

22 (1) not later than September 30, 2010, the av23 erage fuel economy of the new vehicles in the agen24 cy’s fleet of vehicles in each class of vehicles is not 

25 less than three miles per gallon higher than the 


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1 baseline average fuel economy determined for that 

2 class; and 

3 (2) not later than September 30, 2013, the av4 erage fuel economy of the new vehicles in the agen5 cy’s fleet of vehicles in each class of vehicles is not 

6 less than six miles per gallon higher than the base7 line average fuel economy determined for that class. 

8 (c) CALCULATION OF AVERAGE FUEL ECONOMY.— 

9 Average fuel economy shall be calculated for the purposes 

10 of this section in accordance with guidance which the Sec11 retary of Transportation shall prescribe for the implemen12 tation of this section. 

13 (d) DEFINITIONS.— 

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

15 of vehicles for which an average fuel economy stand16 ard is in effect under chapter 329 of title 49, United 

17 States Code. 

18 (2) The term ‘‘executive agency’’ has the mean19 ing given the term in section 4(1) of the Office of 

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

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

22 fleet of vehicles of an executive agency, means a ve23 hicle procured by or for the agency after September 

24 30, 2009. 

Æ 


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