I 
109TH CONGRESS 
1ST SESSION H. R. 3544 
To provide for the stabilization of prices for gasoline, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2005 
Mr. DEFAZIO (for himself and Mr. SANDERS) introduced the following bill; 
which was referred to the Committee on Energy and Commerce, and in 
addition to the Committees on Ways and Means, Government Reform, 
the Judiciary, Resources, and International Relations, 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 con-
cerned 
A BILL 
To provide for the stabilization of prices for gasoline, 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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Gasoline Price Stabilization Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Authorization for gasoline price stabilization. 
Sec. 3. Strategic petroleum reserve drawdown.
Sec. 4. Requirement for the release of oil from the Strategic Petroleum Re-
serve. 
Sec. 5. Minimum inventory levels. 
Sec. 6. Ban on exporting of Alaskan oil. 
Sec. 7. Sense of Congress regarding the Organization of the Petroleum Export-
ing Countries and the World Trade Organization. 
Sec. 8. Windfall profits tax. 
Sec. 9. Merger moratoriums. 
Sec. 10. Petroleum Industry Concentration and Market Power Review Commis-
sion. 
Sec. 11. Increased average fuel economy standards for passenger automobiles 
and light trucks. 
Sec. 12. Fuel economy of the Federal fleet of vehicles. 
SEC. 2. AUTHORIZATION FOR GASOLINE PRICE STABILIZA-
TION. 
(a) PRESIDENTIAL AUTHORITY.—The President may 
issue such orders and regulations as he may deem appro-
priate, including price caps, to stabilize prices for whole-
sale and retail gasoline to levels at or below levels pre-
vailing on March 1, 2004, if the President makes a deter-
mination that— 
(1) there is an increase in gasoline prices 
that— 
(A) is of significant scope and duration; 
and 
(B) is likely to cause a significant adverse 
impact on the national economy, or on a State 
or regional economy; and 
(2) the price increase is substantially caused by 
conduct that lessens competition (or tends to create 
a monopoly) by—
(A) at least one foreign country or inter-
national entity; or 
(B) at least one producer, refiner, or mar-
keter of petroleum products. 
(b) CIVIL MONEY PENALTY.—Whoever willfully vio-
lates any order or regulation issued under this section 
shall be subject to a civil money penalty for each violation 
of not more than $1,000,000. 
(c) INJUNCTIONS.—Whenever it appears to any agen-
cy of the United States, authorized by the President to 
exercise the authority contained in this subsection to en-
force orders and regulations issued under this section, that 
any person has engaged, is engaged, or is about to engage 
in any acts or practices constituting a violation of any 
order or regulation under this section, such agency may 
in its discretion bring an action, in the proper district 
court of the United States or the proper United States 
court of any territory or other place subject to the jurisdic-
tion of the United States, to enjoin such acts or practices, 
and upon a proper showing the court may issue a perma-
nent or temporary injunction or restraining order without 
bond. Upon application of the agency, any such court may 
also order any person to comply with any order or regula-
tion under this section. 
(d) EXPIRATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall cease to have effect one 
year after the date of the enactment of this Act. 
(2) EXCEPTION.—Paragraph (1) shall not af-
fect enforcement relating to a violation of this sec-
tion occurring before the expiration date in para-
graph (1). 
SEC. 3. 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 fur-
ther amended by adding at the end the following new para-
graph: 
‘‘(3)(A) For purposes of this section, in addition to 
the circumstances set forth in section 3(8) and in para-
graph (2) of this subsection, a severe energy supply inter-
ruption 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 inter-
national 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 sub-
paragraph (A) shall— 
‘‘(i) be deposited in the SPR Petroleum Ac-
count established under section 167; and 
‘‘(ii) be used only for the purposes specified in 
such section.’’. 
(c) REPORTING
AND
CONSULTATION
REQUIRE-
MENTS.—When the price of a barrel of crude oil exceeds 
$30 (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 fore-
casts of the Energy Information Administration; 
(3) provides an analysis of the effects of the 
price increase on the cost of gasoline at the whole-
sale and retail levels; and 
(4) states whether, and provides a specific ra-
tionale for why, the President does or does not sup-
port 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 re-
sult of the exercising of the presidential authority; 
and 
(4) the implications of expanding the drawdown 
authority beyond the severe energy supply interrup-
tion 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 pre-
determined time in the future. 
SEC. 4. REQUIREMENT FOR THE RELEASE OF OIL FROM 
THE STRATEGIC PETROLEUM RESERVE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The prices of gasoline and crude oil have a 
direct and substantial impact on the financial well- 
being of families and businesses in the United
States, on the potential for national economic recov-
ery, and on the economic security of the United 
States. 
(2) The Strategic Petroleum Reserve was cre-
ated to enhance the physical and economic security 
of the United States, and the law allows the Stra-
tegic Petroleum Reserve to be used to provide relief 
when oil and gasoline supply shortages cause eco-
nomic hardship. 
(3) The proper management of the resources of 
the Strategic Petroleum Reserve could provide gaso-
line price relief to families in the United States and 
provide the United States with a tool to counter-
balance the supply management policies of the Orga-
nization of the Petroleum Exporting Countries. 
(4) In order to combat high gasoline prices dur-
ing the summer and fall of 2000, President Clinton 
released 30,000,000 barrels of oil from the Strategic 
Petroleum Reserve and stabilized the price of gaso-
line. 
(b) REQUIREMENT.—For purposes of lowering the 
burden of gasoline prices on the economy of the United 
States and circumventing the Organization of the Petro-
leum Exporting Countries’ efforts to reap windfall crude
oil profits and starting on the date of the enactment of 
this Act, the President shall— 
(1) suspend the delivery of oil to the Strategic 
Petroleum Reserve until the date on which the price 
for a gallon of gasoline, as reported by the United 
States Energy Information Administration, is less 
than $1.50 per gallon; and 
(2) release at least 1,000,000 barrels of oil per 
day from the Strategic Petroleum Reserve until the 
sooner of — 
(A) the date that is 60 days following the 
date of the enactment of this Act; or 
(B) the date on which the average price for 
a gallon of gasoline, as reported by the United 
States Energy Information Administration, is 
less than $1.50 per gallon. 
SEC. 5. MINIMUM INVENTORY LEVELS. 
(a) ESTABLISHING MINIMUM LEVELS.—The Sec-
retary 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 sub-
section (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 lev-
els 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. 6. BAN ON EXPORTING OF ALASKAN OIL. 
(a) REPEAL
OF
PROVISION
AUTHORIZING
EX-
PORTS.—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 (in-
cluding sections 11 and 12) shall apply to the extent nec-
essary to carry out such section 7(d), notwithstanding sec-
tion 20 of such Act and notwithstanding any other provi-
sion of law that would otherwise allow the export of oil 
to which such section 7(d) applies. 
SEC. 7. SENSE OF CONGRESS REGARDING THE ORGANIZA-
TION OF THE PETROLEUM EXPORTING COUN-
TRIES AND THE WORLD TRADE ORGANIZA-
TION. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) No free market exists in oil production be-
cause of collusion among large oil-producing coun-
tries. 
(2) The Organization of the Petroleum Export-
ing Countries (in this section referred to as 
‘‘OPEC’’) and other oil-producing countries have re-
peatedly agreed to coordinated cutbacks in produc-
tion, 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 in-
creases in consumer prices for items such as home 
heating oil and gasoline, and continued price vola-
tility. 
(4) Rising oil prices greatly harm consumers, 
farmers, small businesses, and manufacturers, in-
crease 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 terri-
tory of any other contracting party or on the expor-
tation 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 com-
prehensive: it applied to all measures instituted or 
maintained by a contracting party prohibiting or re-
stricting the importation, exportation, or sale for ex-