I 
109TH CONGRESS 
1ST SESSION H. R. 3936 
To protect consumers from price-gouging of gasoline and other fuels during 
energy emergencies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2005 
Mr. STUPAK (for himself, Ms. HERSETH, Mr. ETHERIDGE, Ms. PELOSI, Mr. 
DEFAZIO, Mr. OBERSTAR, Ms. SCHAKOWSKY, Mr. HOLDEN, Mr. KILDEE, 
Mr. RAHALL, Mr. MICHAUD, Ms. BORDALLO, Mrs. CAPPS, Ms. 
SCHWARTZ of Pennsylvania, Mr. FILNER, Mr. PASCRELL, Mr. BISHOP of 
New York, Mr. MCNULTY, Mr. COSTELLO, Mr. SANDERS, Mr. CONYERS, 
Mr. LIPINSKI, Mr. BOUCHER, Ms. ESHOO, Ms. HARMAN, Mr. EVANS, Mr. 
PALLONE, Ms. MCCOLLUM of Minnesota, Mr. ENGEL, Mr. MARKEY, Mrs. 
MCCARTHY, Mr. HINCHEY, Ms. SOLIS, and Mr. VAN HOLLEN) intro-
duced the following bill; which was referred to the Committee on Energy 
and Commerce, and in addition to the Committee on Education and the 
Workforce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To protect consumers from price-gouging of gasoline and 
other fuels during energy emergencies, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Response to 
Energy Emergencies Act of 2005’’. 
SEC. 2. UNCONSCIONABLE PRICING OF GASOLINE, OIL, 
NATURAL 
GAS, 
AND 
PETROLEUM 
DIS-
TILLATES DURING EMERGENCIES. 
(a) UNCONSCIONABLE PRICING.— 
(1) IN
GENERAL.—During any energy emer-
gency declared by the President under section 3, it 
is unlawful for any person to sell crude oil, gasoline, 
natural gas, or petroleum distillates in, or for use in, 
the area to which that declaration applies at a price 
that— 
(A) is unconscionably excessive; or 
(B) indicates the seller is taking unfair ad-
vantage of the circumstances to increase prices 
unreasonably. 
(2) FACTORS
CONSIDERED.—In determining 
whether a violation of paragraph (1) has occurred, 
there shall be taken into account, among other fac-
tors, whether— 
(A) the amount charged represents a gross 
disparity between the price of the crude oil, gas-
oline, natural gas, or petroleum distillate sold 
and the price at which it was offered for sale
in the usual course of the seller’s business im-
mediately prior to the energy emergency; or 
(B) the amount charged grossly exceeds 
the price at which the same or similar crude oil, 
gasoline, natural gas, or petroleum distillate 
was readily obtainable by other purchasers in 
the area to which the declaration applies. 
(3) MITIGATING
FACTORS.—In determining 
whether a violation of paragraph (1) has occurred, 
there also shall be taken into account, among other 
factors, whether the price at which the crude oil, 
gasoline, natural gas, or petroleum distillate was 
sold reasonably reflects additional costs, not within 
the control of the seller, that were paid or incurred 
by the seller. 
(b) FALSE PRICING INFORMATION.—It is unlawful 
for any person to report information related to the whole-
sale price of crude oil, gasoline, natural gas, or petroleum 
distillates to the Federal Trade Commission if— 
(1) that person knew, or reasonably should have 
known, the information to be false or misleading; 
(2) the information was required by law to be 
reported; and 
(3) the person intended the false or misleading 
data to affect data compiled by that department or
agency for statistical or analytical purposes with re-
spect to the market for crude oil, gasoline, natural 
gas, or petroleum distillates. 
(c) MARKET MANIPULATION.—It is unlawful for any 
person, directly or indirectly, to use or employ, in connec-
tion with the purchase or sale of crude oil, gasoline, nat-
ural gas, or petroleum distillates at wholesale, any ma-
nipulative or deceptive device or contrivance, in contraven-
tion of such rules and regulations as the Federal Trade 
Commission may prescribe as necessary or appropriate in 
the public interest or for the protection of United States 
citizens. 
(d) RULEMAKING.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Trade Com-
mission shall promulgate rules necessary and appropriate 
to enforce this section. 
SEC. 3. DECLARATION OF ENERGY EMERGENCY. 
(a) IN GENERAL.—If the President finds that the 
health, safety, welfare, or economic well-being of the citi-
zens of the United States is at risk because of a shortage 
or imminent shortage of adequate supplies of crude oil, 
gasoline, natural gas, or petroleum distillates due to a dis-
ruption of the national distribution system for crude oil, 
gasoline, natural gas, or petroleum distillates (including 
such a shortage related to a major disaster (as defined
in section 102(2) of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5122))), or sig-
nificant pricing anomalies in national or regional energy 
markets for crude oil, gasoline, natural gas, or petroleum 
distillates of a more than transient nature, the President 
may declare that a Federal energy emergency exists. 
(b) SCOPE AND DURATION.—The declaration shall 
apply to the Nation, a geographical region, or 1 or more 
States, as determined by the President, but may not be 
in effect for a period of more than 45 days. 
(c) EXTENSIONS.—The President may— 
(1) extend a declaration under subsection (a) 
for a period of not more than 45 days; and 
(2) extend such a declaration more than once. 
SEC. 4. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(a) ENFORCEMENT BY FTC.—A violation of section 
2 shall be treated as a violation of a rule defining an un-
fair or deceptive act or practice prescribed under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 
shall enforce this Act in the same manner, by the same 
means, and with the same jurisdiction as though all appli-
cable terms and provisions of the Federal Trade Commis-
sion Act were incorporated into and made a part of this
Act. In enforcing section 2(a) of this Act, the Commission 
shall give priority to enforcement actions concerning com-
panies with total United States wholesale or retail sales 
of crude oil, gasoline, and petroleum distillates in excess 
of $500,000,000 per year. 
(b) CIVIL PENALTIES.— 
(1) IN
GENERAL.—Notwithstanding the pen-
alties set forth under the Federal Trade Commission 
Act, any person who violates this Act shall be sub-
ject to the following penalties: 
(A) PRICE GOUGING; UNJUST PROFITS.— 
Any person who violates section 2(a) of this Act 
shall be subject to— 
(i) a fine of not more than 3 times the 
amount of profits gained by such person 
through such violation; or 
(ii) 
a 
fine 
of 
not 
more 
than 
$3,000,000. 
(B) FALSE INFORMATION; MARKET MANIP-
ULATION.—Any person who violates section 
2(b) or 2(c) of this Act shall be subject to a 
civil penalty of not more than $1,000,000. 
(2) METHOD OF ASSESSMENT.—The penalties 
provided by paragraph (1) shall be assessed in the 
same manner as civil penalties imposed under sec-
tion 5 of the Federal Trade Commission Act (15 
U.S.C. 45). 
(3) MULTIPLE
OFFENSES; MITIGATING
FAC-
TORS.—In assessing the penalty provided by sub-
section (a)— 
(A) each day of a continuing violation shall 
be considered a separate violation; and 
(B) the Federal Trade Commission shall 
take into consideration the seriousness of the 
violation and the efforts of the person commit-
ting the violation to remedy the harm caused by 
the violation in a timely manner. 
SEC. 5. CRIMINAL PENALTIES. 
Any person who violates section 2 or any rule or order 
issued thereunder shall be fined under title 18, United 
States Code— 
(1) 
if 
a 
corporation, 
not 
to 
exceed 
$100,000,000; or 
(2) if any other person, not to exceed 
$1,000,000, or imprisoned for not more than 10 
years, or both. 
SEC. 6. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTOR-
NEYS GENERAL. 
(a) IN GENERAL.—A State, as parens patriae, may 
bring a civil action on behalf of its residents in an appro-
priate district court of the United States to enforce the 
provisions of section 2(a) of this Act, or to impose the 
civil penalties authorized by section 4(b)(1)(B), whenever 
the attorney general of the State has reason to believe that 
the interests of the residents of the State have been or 
are being threatened or adversely affected by a violation 
of this Act or a regulation under this Act. 
(b) NOTICE.—The State shall serve written notice to 
the Federal Trade Commission of any civil action under 
subsection (a) prior to initiating such civil action. The no-
tice shall include a copy of the complaint to be filed to 
initiate such civil action, except that if it is not feasible 
for the State to provide such prior notice, the State shall 
provide such notice immediately upon instituting such civil 
action. 
(c) AUTHORITY TO INTERVENE.—Upon receiving the 
notice required by subsection (b), the Federal Trade Com-
mission may intervene in such civil action and upon inter-
vening— 
(1) be heard on all matters arising in such civil 
action; and 
(2) file petitions for appeal of a decision in such 
civil action. 
(d) CONSTRUCTION.—For purposes of bringing any 
civil action under subsection (a), nothing in this section
shall prevent the attorney general of a State from exer-
cising the powers conferred on the attorney general by the 
laws of such State to conduct investigations or to admin-
ister oaths or affirmations or to compel the attendance 
of witnesses or the production of documentary and other 
evidence. 
(e) VENUE; SERVICE OF PROCESS.—In a civil action 
brought under subsection (a)— 
(1) the venue shall be a judicial district in 
which— 
(A) the defendant operates; 
(B) the defendant was authorized to do 
business; or 
(C) where the defendant in the civil action 
is found; 
(2) process may be served without regard to the 
territorial limits of the district or of the State in 
which the civil action is instituted; and 
(3) a person who participated with the defend-
ant in an alleged violation that is being litigated in 
the civil action may be joined in the civil action with-
out regard to the residence of the person. 
(f) LIMITATION ON STATE ACTION WHILE FEDERAL 
ACTION IS PENDING.—If the Federal Trade Commission 
has instituted a civil action or an administrative action
for violation of this Act, no State attorney general, or offi-
cial or agency of a State, may bring an action under this 
subsection during the pendency of that action against any 
defendant named in the complaint of the Federal Trade 
Commission or the other agency for any violation of this 
Act alleged in the complaint. 
(g) ENFORCEMENT OF STATE LAW.—Nothing con-
tained in this section shall prohibit an authorized State 
official from proceeding in State court to enforce a civil 
or criminal statute of such State. 
SEC. 7. LOW INCOME ENERGY ASSISTANCE. 
Amounts collected in fines and penalties under sec-
tions 4 or 5 of this Act shall be deposited in a separate 
fund in the treasury to be known as the Consumer Relief 
Trust Fund. To the extent provided for in advance in ap-
propriations Acts fund shall be used to provide assistance 
under the Low Income Home Energy Assistance Program 
administered by the Secretary of Health and Human Serv-
ices. 
SEC. 8. EFFECT ON OTHER LAWS. 
(a) OTHER AUTHORITY OF FEDERAL TRADE COM-
MISSION.—Nothing in this Act shall be construed to limit 
or affect in any way the Federal Trade Commission’s au-
thority to bring enforcement actions or take any other
measure under the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) or any other provision of law. 
(b) STATE LAW.—Nothing in this Act preempts any 
State law. 
SEC. 9. MARKET TRANSPARENCY FOR CRUDE OIL, GASO-
LINE, AND PETROLEUM DISTILLATES. 
(a) IN GENERAL.—The Federal Trade Commission 
shall facilitate price transparency in markets for the sale 
of crude oil and essential petroleum products at wholesale, 
having due regard for the public interest, the integrity of 
those markets, fair competition, and the protection of con-
sumers. 
(b) MARKETPLACE TRANSPARENCY.— 
(1) DISSEMINATION OF INFORMATION.—In car-
rying out this section the Federal Trade Commission 
shall provide by rule for the dissemination, on a 
timely basis, of information about the availability 
and prices of wholesale crude oil, gasoline, and pe-
troleum distillates to the Federal Trade Commission, 
States, wholesale buyers and sellers, and the public. 
(2) PROTECTION
OF
PUBLIC
FROM
ANTI-
COMPETITIVE ACTIVITY.—In determining the infor-
mation to be made available under this section and 
time to make the information available, the Federal 
Trade Commission shall seek to ensure that con-
sumers and competitive markets are protected from 
the adverse effects of potential collusion or other 
anticompetitive behaviors that can be facilitated by 
untimely public disclosure of transaction-specific in-
formation. 
(3) PROTECTION OF MARKET MECHANISMS.— 
The Federal Trade Commission shall withhold from 
public disclosure under this section any information 
the Commission determines would, if disclosed, be 
detrimental to the operation of an effective market 
or jeopardize system security. 
(c) INFORMATION SOURCES.— 
(1) IN GENERAL.—In carrying out subsection 
(b), the Federal Trade Commission may— 
(A) obtain information from any market 
participant; and 
(B) rely on entities other than the Com-
mission to receive and make public the informa-
tion, subject to the disclosure rules in sub-
section (b)(3). 
(2) PUBLISHED
DATA.—In carrying out this 
section, the Federal Trade Commission shall con-
sider the degree of price transparency provided by 
existing price publishers and providers of trade proc-
essing services, and shall rely on such publishers and 
services to the maximum extent possible. 
(3) ELECTRONIC INFORMATION SYSTEMS.—The 
Federal Trade Commission may establish an elec-
tronic information system if it determines that exist-
ing price publications are not adequately providing 
price discovery or market transparency. Nothing in 
this section, however, shall affect any electronic in-
formation filing requirements in effect under this 
Act as of the date of enactment of this section. 
(4) DE
MINIMUS
EXCEPTION.—The Federal 
Trade Commission may not require entities who 
have a de minimus market presence to comply with 
the reporting requirements of this section. 
(d) COOPERATION WITH OTHER FEDERAL AGEN-
CIES.— 
(1) 
MEMORANDUM
OF
UNDERSTANDING.— 
Within 180 days after the date of enactment of this 
Act, the Federal Trade Commission shall conclude a 
memorandum of understanding with the Commodity 
Futures Trading Commission and other appropriate 
agencies (if applicable) relating to information shar-
ing, which shall include provisions— 
(A) ensuring that information requests to 
markets within the respective jurisdiction of
each agency are properly coordinated to mini-
mize duplicative information requests; and 
(B) regarding the treatment of proprietary 
trading information. 
(2) CFTC JURISDICTION.—Nothing in this sec-
tion may be construed to limit or affect the exclusive 
jurisdiction of the Commodity Futures Trading 
Commission under the Commodity Exchange Act (7 
U.S.C. 1 et seq.). 
(e) RULEMAKING.—Within 180 days after the date 
of enactment of this Act, the Federal Trade Commission 
shall initiate a rulemaking proceeding to establish such 
rules as the Commission determines to be necessary and 
appropriate to carry out this section. 
SEC. 10. REPORT ON UNITED STATES ENERGY EMERGENCY 
PREPAREDNESS. 
(a) POTENTIAL IMPACTS REPORT.—Within 30 days 
after the date of enactment of this Act, the Federal Trade 
Commission shall transmit to the Congress a confidential 
report describing the potential impact on domestic prices 
of crude oil, residual fuel oil, and refined petroleum prod-
ucts that would result from the disruption for periods of 
1 week, 1 year, and 5 years, respectively, of not less 
than— 
(1) 30 percent of United States oil production;
(2) 20 percent of United States refinery capac-
ity; and 
(3) 5 percent of global oil supplies. 
(b) PROJECTIONS AND POSSIBLE REMEDIES.—The 
President shall include in the report— 
(1) projections of the impact any such disrup-
tions would be likely to have on the United States 
economy; and 
(2) detailed and prioritized recommendations 
for remedies under each scenario covered by the re-
port. 
SEC. 11. PROTECTIVE ACTION TO PREVENT FUTURE DIS-
RUPTIONS OF SUPPLY. 
The Secretary of Energy and the Energy Information 
Administration shall review expenditures by, and activities 
undertaken by, companies with total United States whole-
sale or retail sales of crude oil, gasoline, and petroleum 
distillates in excess of $500,000,000 per year to protect 
the energy supply system from terrorist attacks, inter-
national supply disruptions, and natural disasters, and en-
sure a stable and reasonably priced supply of such prod-
ucts to consumers in the United States, and, not later 
than 180 days after the date of the enactment of this title, 
shall transmit a report of their findings to Congress. Such 
report shall include an assessment of the companies’ prep-
arations for the forecasted period of more frequent and 
more intense hurricane activity in the Gulf of Mexico and 
other vulnerable coastal areas. 
SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as may be necessary to carry out the provisions of this 
Act. 
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