I 
110TH CONGRESS 
2D SESSION 
H. R. 6653 
To provide energy price relief and hold oil companies and other entities 
accountable for their actions with regard to high energy prices, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2008 
Ms. SCHAKOWSKY introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committees on 
Energy and Commerce, Agriculture, and the Judiciary, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To provide energy price relief and hold oil companies and 
other entities accountable for their actions with regard 
to high energy prices, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Consumer Energy Relief Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—TAX PROVISIONS RELATED TO OIL AND GAS 
Sec. 101. Denial of deduction for major integrated oil companies for income at-
tributable to domestic production of oil, gas, or primary prod-
ucts thereof. 
Sec. 102. Elimination of the different treatment of foreign oil and gas extrac-
tion income and foreign oil related income for purposes of the 
foreign tax credit. 
Sec. 103. Windfall profits tax. 
Sec. 104. Energy Independence and Security Trust Fund. 
TITLE II—PRICE GOUGING 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. Jurisdiction of the commodity futures trading commission extended 
to derivatives involving energy commodities. 
Sec. 204. Energy emergency and additional price gouging enforcement. 
Sec. 205. Presidential declaration of energy emergency. 
Sec. 206. Enforcement by the Federal Trade Commission. 
Sec. 207. Enforcement by State attorneys general. 
Sec. 208. Penalties. 
Sec. 209. Effect on other laws. 
TITLE III—NO OIL PRODUCING AND EXPORTING CARTELS 
Sec. 301. No Oil Producing and Exporting Cartels Act of 2008. 
TITLE IV—MARKET SPECULATION 
Sec. 401. Speculative limits and transparency for off-shore oil trading. 
Sec. 402. Margin level for crude oil. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) excessive prices for petroleum products have 
created, or imminently threaten to create, severe 
economic dislocations and hardships, including the 
loss of jobs, business failures, disruption of economic 
activity, curtailment of vital public services, and 
price increases throughout the economy; 
(2) those hardships and dislocations jeopardize 
the normal flow of commerce and constitute a na-
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tional energy and economic crisis that is a threat to 
the public health, safety, and welfare of the United 
States; 
(3) consumers, workers, small businesses, and 
large businesses of the United States are particu-
larly vulnerable to those price increase due to the 
failure of the President to aggressively develop alter-
natives to petroleum and petroleum products and to 
promote efficiency and conservation; 
(4) reliable and affordable supplies of crude oil 
and products refined from crude oil (including gaso-
line, diesel fuel, heating oil, and jet fuel) are vital to 
the economic and national security of the United 
States given current energy infrastructure and tech-
nology; 
(5) the price of crude oil and products refined 
from crude oil (including gasoline, diesel fuel, heat-
ing oil, and jet fuel) have skyrocketed to record lev-
els and are continuing to rise; 
(6) since 2001, oil prices have increased from 
$29 per barrel to levels near $120 per barrel and 
gasoline prices have more than doubled from $1.47 
per gallon to more than $3.50 per gallon; 
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(7) the record prices for crude oil and products 
refined from crude oil (including gasoline, diesel 
fuel, heating oil, and jet fuel)— 
(A) are hurting millions of consumers, 
workers, small businesses, and large businesses 
of the United States, and threaten long-term 
damage to the economy and security of the 
United States; 
(B) are partially due to— 
(i) the declining value of the dollar 
and a widespread lack of confidence in the 
management of economic and foreign pol-
icy by the President; 
(ii) the accumulation of national debt 
and growing budget deficits under the 
failed economic policies of the President; 
and 
(iii) high levels of military expendi-
tures under the failed policies of the Presi-
dent in Iraq; and 
(C) are no longer justified by traditional 
forces of supply and demand; 
(8) rampant speculation in the markets for 
crude oil and products refined from crude oil has 
magnified the price increases and market volatility 
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resulting from those underlying causes of price in-
creases; and 
(9) Congress must take urgent action to protect 
consumers, workers, and businesses of the United 
States from rampant speculation in the energy mar-
kets and the price increases resulting from the failed 
domestic and foreign policies of the President. 
TITLE I—TAX PROVISIONS 
RELATED TO OIL AND GAS 
SEC. 101. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED 
OIL COMPANIES FOR INCOME ATTRIBUTABLE 
TO DOMESTIC PRODUCTION OF OIL, GAS, OR 
PRIMARY PRODUCTS THEREOF. 
(a) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) (relating to exceptions) is amended by striking 
‘‘or’’ at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting ‘‘, or’’, and by insert-
ing after clause (iii) the following new clause: 
‘‘(iv) in the case of any major inte-
grated oil company (as defined in section 
167(h)(5)(B)), the production, refining, 
processing, transportation, or distribution 
of oil, gas, or any primary product thereof 
during any taxable year described in sec-
tion 167(h)(5)(B).’’. 
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(b) PRIMARY PRODUCT.—Section 199(c)(4)(B) is 
amended by adding at the end the following flush sen-
tence: 
‘‘For purposes of clause (iv), the term ‘primary 
product’ has the same meaning as when used in 
section 927(a)(2)(C), as in effect before its re-
peal.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 102. ELIMINATION OF THE DIFFERENT TREATMENT 
OF FOREIGN OIL AND GAS EXTRACTION IN-
COME AND FOREIGN OIL RELATED INCOME 
FOR PURPOSES OF THE FOREIGN TAX CRED-
IT. 
(a) IN GENERAL.—Subsections (a) and (b) of section 
907 of the Internal Revenue Code of 1986 (relating to 
special rules in case of foreign oil and gas income) are 
amended to read as follows: 
‘‘(a) REDUCTION IN AMOUNT ALLOWED AS FOREIGN 
TAX UNDER SECTION 901.—In applying section 901, the 
amount of any foreign oil and gas taxes paid or accrued 
(or deemed to have been paid) during the taxable year 
which would (but for this subsection) be taken into ac-
count for purposes of section 901 shall be reduced by the 
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amount (if any) by which the amount of such taxes ex-
ceeds the product of— 
‘‘(1) the amount of the combined foreign oil 
and gas income for the taxable year, 
‘‘(2) multiplied by— 
‘‘(A) in the case of a corporation, the per-
centage which is equal to the highest rate of tax 
specified under section 11(b), or 
‘‘(B) in the case of an individual, a frac-
tion the numerator of which is the tax against 
which the credit under section 901(a) is taken 
and the denominator of which is the taxpayer’s 
entire taxable income. 
‘‘(b) COMBINED FOREIGN OIL AND GAS INCOME; 
FOREIGN OIL AND GAS TAXES.—For purposes of this sec-
tion— 
‘‘(1) COMBINED
FOREIGN
OIL
AND
GAS
IN-
COME.—The term ‘combined foreign oil and gas in-
come’ means, with respect to any taxable year, the 
sum of— 
‘‘(A) foreign oil and gas extraction income, 
and 
‘‘(B) foreign oil related income. 
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‘‘(2) FOREIGN OIL AND GAS TAXES.—The term 
‘foreign oil and gas taxes’ means, with respect to 
any taxable year, the sum of— 
‘‘(A) oil and gas extraction taxes, and 
‘‘(B) any income, war profits, and excess 
profits taxes paid or accrued (or deemed to 
have been paid or accrued under section 902 or 
960) during the taxable year with respect to 
foreign oil related income (determined without 
regard to subsection (c)(4)) or loss which would 
be taken into account for purposes of section 
901 without regard to this section.’’. 
(b) RECAPTURE
OF
FOREIGN
OIL
AND
GAS 
LOSSES.—Paragraph (4) of section 907(c) of the Internal 
Revenue Code of 1986 (relating to recapture of foreign 
oil and gas extraction losses by recharacterizing later ex-
traction income) is amended to read as follows: 
‘‘(4) RECAPTURE
OF
FOREIGN
OIL
AND
GAS 
LOSSES
BY
RECHARACTERIZING
LATER
COMBINED 
FOREIGN OIL AND GAS INCOME.— 
‘‘(A) IN GENERAL.—The combined foreign 
oil and gas income of a taxpayer for a taxable 
year (determined without regard to this para-
graph) shall be reduced— 
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‘‘(i) first by the amount determined 
under subparagraph (B), and 
‘‘(ii) then by the amount determined 
under subparagraph (C). 
The aggregate amount of such reductions shall 
be treated as income (from sources without the 
United States) which is not combined foreign 
oil and gas income. 
‘‘(B) REDUCTION FOR PRE-2008 FOREIGN 
OIL
EXTRACTION
LOSSES.—The 
reduction 
under this paragraph shall be equal to the less-
er of— 
‘‘(i) the foreign oil and gas extraction 
income of the taxpayer for the taxable year 
(determined without regard to this para-
graph), or 
‘‘(ii) the excess of— 
‘‘(I) the aggregate amount of for-
eign oil extraction losses for preceding 
taxable years beginning after Decem-
ber 31, 1982, and before January 1, 
2008, over 
‘‘(II) so much of such aggregate 
amount as was recharacterized under 
this paragraph (as in effect before 
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and after the date of the enactment of 
the Consumer Energy Relief Act of 
2008) for preceding taxable years be-
ginning after December 31, 1982. 
‘‘(C) REDUCTION FOR POST-2008 FOREIGN 
OIL
AND
GAS
LOSSES.—The reduction under 
this paragraph shall be equal to the lesser of— 
‘‘(i) the combined foreign oil and gas 
income of the taxpayer for the taxable year 
(determined without regard to this para-
graph), reduced by an amount equal to the 
reduction under subparagraph (A) for the 
taxable year, or 
‘‘(ii) the excess of— 
‘‘(I) the aggregate amount of for-
eign oil and gas losses for preceding 
taxable years beginning after Decem-
ber 31, 2008, over 
‘‘(II) so much of such aggregate 
amount as was recharacterized under 
this paragraph for preceding taxable 
years beginning after December 31, 
2008. 
‘‘(D) FOREIGN
OIL
AND
GAS
LOSS
DE-
FINED.— 
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‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘foreign oil and 
gas loss’ means the amount by which— 
‘‘(I) the gross income for the tax-
able year from sources without the 
United States and its possessions 
(whether or not the taxpayer chooses 
the benefits of this subpart for such 
taxable year) taken into account in 
determining the combined foreign oil 
and gas income for such year, is ex-
ceeded by 
‘‘(II) the sum of the deductions 
properly 
apportioned 
or 
allocated 
thereto. 
‘‘(ii) NET
OPERATING
LOSS
DEDUC-
TION
NOT
TAKEN
INTO
ACCOUNT.—For 
purposes of clause (i), the net operating 
loss deduction allowable for the taxable 
year under section 172(a) shall not be 
taken into account. 
‘‘(iii) EXPROPRIATION AND CASUALTY 
LOSSES NOT TAKEN INTO ACCOUNT.—For 
purposes of clause (i), there shall not be 
taken into account— 
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‘‘(I) any foreign expropriation 
loss (as defined in section 172(h) (as 
in effect on the day before the date of 
the enactment of the Revenue Rec-
onciliation Act of 1990)) for the tax-
able year, or 
‘‘(II) any loss for the taxable 
year which arises from fire, storm, 
shipwreck, or other casualty, or from 
theft, 
to the extent such loss is not compensated 
for by insurance or otherwise. 
‘‘(iv) 
FOREIGN
OIL
EXTRACTION 
LOSS.—For 
purposes 
of 
subparagraph 
(B)(ii)(I), foreign oil extraction losses shall 
be determined under this paragraph as in 
effect on the day before the date of the en-
actment of the Consumer Energy Relief 
Act of 2008.’’. 
(c) CARRYBACK AND CARRYOVER OF DISALLOWED 
CREDITS.—Section 907(f) of the Internal Revenue Code 
of 1986 (relating to carryback and carryover of disallowed 
credits) is amended— 
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(1) by striking ‘‘oil and gas extraction taxes’’ 
each place it appears and inserting ‘‘foreign oil and 
gas taxes’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) TRANSITION
RULES
FOR
PRE-2009
AND 
2009 DISALLOWED CREDITS.— 
‘‘(A) PRE-2009 CREDITS.—In the case of 
any unused credit year beginning before Janu-
ary 1, 2009, this subsection shall be applied to 
any unused oil and gas extraction taxes carried 
from such unused credit year to a year begin-
ning after December 31, 2008— 
‘‘(i) by substituting ‘oil and gas ex-
traction taxes’ for ‘foreign oil and gas 
taxes’ each place it appears in paragraphs 
(1), (2), and (3), and 
‘‘(ii) by computing, for purposes of 
paragraph (2)(A), the limitation under 
subparagraph (A) for the year to which 
such taxes are carried by substituting ‘for-
eign oil and gas extraction income’ for ‘for-
eign oil and gas income’ in subsection (a). 
‘‘(B) 2009 CREDITS.—In the case of any 
unused credit year beginning in 2009, the 
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amendments made to this subsection by the 
Consumer Energy Relief Act of 2008 shall be 
treated as being in effect for any preceding year 
beginning before January 1, 2009, solely for 
purposes of determining how much of the un-
used foreign oil and gas taxes for such unused 
credit year may be deemed paid or accrued in 
such preceding year.’’. 
(d) CONFORMING AMENDMENT.—Section 6501(i) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘oil and gas extraction taxes’’ and inserting ‘‘foreign oil 
and gas taxes’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 103. WINDFALL PROFITS TAX. 
(a) IN GENERAL.—Subtitle E of the Internal Rev-
enue Code of 1986 (relating to alcohol, tobacco, and cer-
tain 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; qualified investment. 
‘‘Sec. 5898. Special rules and definitions. 
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adjusted taxable income for any taxable year is equal to 
the taxable income for such taxable year (within the mean-
ing of section 63 and determined without regard to this 
subsection)— 
‘‘(1) increased by any interest expense deduc-
tion, charitable contribution deduction, and any net 
operating loss deduction carried forward from any 
prior taxable year, and 
‘‘(2) reduced by any interest income, dividend 
income, and net operating losses to the extent such 
losses exceed taxable income for the taxable year. 
In the case of any applicable taxpayer which is a foreign 
corporation, the adjusted taxable income shall be deter-
mined with respect to such income which is effectively con-
nected with the conduct of a trade or business in the 
United States. 
‘‘(c) REASONABLY INFLATED AVERAGE PROFIT.— 
For purposes of this chapter, with respect to any applica-
ble taxpayer, the reasonably inflated average profit for any 
taxable year is an amount equal to the average of the ad-
justed taxable income of such taxpayer for taxable years 
beginning during the 2002–2006 taxable year period (de-
termined without regard to the taxable year with the high-
est adjusted taxable income in such period) plus 10 per-
cent of such average. 
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‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 
chapter, the term ‘qualified investment’ means, with re-
spect to any applicable taxpayer, any amount paid or in-
curred with respect to— 
‘‘(1) any qualified facility described in para-
graph (1), (2), (3), (4), (5), (6), (7), or (9) of sec-
tion 45(d) (determined without regard to any placed 
in service date), or 
‘‘(2) any facility for the production of renewable 
fuel or advanced biofuel (as defined in section 
211(o) of the Clean Air Act (42 U.S.C. 7545)). 
‘‘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. 
‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 
liable for tax under section 5896 shall keep such records, 
make such returns, and furnish such information as the 
Secretary may by regulations prescribe. 
‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec-
retary shall provide for the filing and the time of such 
filing of the return of the tax imposed under section 5896. 
‘‘(d) CRUDE OIL.—The term ‘crude oil’ includes 
crude oil condensates and natural gasoline. 
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‘‘(e) BUSINESSES UNDER COMMON CONTROL.—For 
purposes of this chapter, all members of the same con-
trolled group of corporations (within the meaning of sec-
tion 267(f)) and all persons under common control (within 
the meaning of section 52(b) but determined by treating 
an interest of more than 50 percent as a controlling inter-
est) shall be treated as 1 person. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter.’’. 
(b) 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.’’. 
(c) DEDUCTIBILITY OF WINDFALL PROFIT TAX.— 
The first sentence of section 164(a) of the Internal Rev-
enue 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.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
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SEC. 104. ENERGY INDEPENDENCE AND SECURITY TRUST 
FUND. 
(a) ESTABLISHMENT.—Subchapter A of chapter 98 
of the Internal Revenue Code of 1986 (relating to trust 
fund code) is amended by adding at the end the following 
new section: 
‘‘SEC. 9511. ENERGY INDEPENDENCE AND SECURITY TRUST 
FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as ‘Energy Independence and Security Trust 
Fund’ (referred to in this section as the ‘Trust Fund’), 
consisting of such amounts as may be appropriated or 
credited to the Trust Fund as provided in this section or 
section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There is hereby 
appropriated to the Trust Fund an amount equivalent 
to— 
‘‘(1) the increase in the revenues received in the 
Treasury as the result of the amendments made by 
sections 101, 102, and 103 of the Consumer Energy 
Relief Act of 2008, and 
‘‘(2) the penalties received under section 208 of 
the Petroleum Consumer Price Gouging Protection 
Act. 
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‘‘(c) DISTRIBUTION OF AMOUNTS IN TRUST FUND.— 
Amounts in the Trust Fund shall be available, as provided 
by appropriation Acts, to the Administrator of the Envi-
ronmental Protection Agency to allocate to the following: 
‘‘(1) Expansion of the Low Income Home En-
ergy Assistance Program (LIHEAP). 
‘‘(2) Implementation or expansion of weather-
ization programs. 
‘‘(3) Financial assistance for the purchase of 
hybrid vehicles. 
‘‘(4) Financial assistance for the purchase of 
energy efficient vehicles. 
‘‘(5) Financial assistance for the purchase of 
energy efficient appliances. 
‘‘(6) Grants for research and development of re-
newable energy sources.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 9511. Energy Independence and Security Trust Fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
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TITLE II—PRICE GOUGING 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Petroleum Consumer 
Price Gouging Protection Act’’. 
SEC. 202. DEFINITIONS. 
In this title: 
(1) AFFECTED
AREA.—The term ‘‘affected 
area’’ means an area covered by a Presidential dec-
laration of energy emergency. 
(2) SUPPLIER.—The term ‘‘supplier’’ means 
any person engaged in the trade or business of sell-
ing or reselling, at retail or wholesale, or distributing 
crude oil, gasoline, natural gas, petroleum distillates, 
or biofuel. 
(3) 
PRICE
GOUGING.—The 
term 
‘‘price 
gouging’’ means the charging of an unconscionably 
excessive price by a supplier in an affected area. 
(4) UNCONSCIONABLY EXCESSIVE PRICE.—The 
term ‘‘unconscionably excessive price’’ means an av-
erage price charged during an energy emergency de-
clared by the President in an area and for a product 
subject to the declaration, that— 
(A)(i)(I) constitutes a gross disparity from 
the average price at which it was offered for 
sale in the usual course of the supplier’s busi-
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ness during the 30 days prior to the President’s 
declaration of an energy emergency; and 
(II) grossly exceeds the prices at which the 
same or similar crude oil, gasoline, natural gas, 
petroleum distillates, or biofuel was readily ob-
tainable by purchasers from other suppliers in 
the same relevant geographic market within the 
affected area; or 
(ii) represents an exercise of unfair lever-
age or unconscionable means on the part of the 
supplier, during a period of declared energy 
emergency; and 
(B) is not attributable to increased whole-
sale or operational costs, including replacement 
costs, outside the control of the supplier, in-
curred in connection with the sale of crude oil, 
gasoline, natural gas, petroleum distillates, or 
biofuel, and is not attributable to local, re-
gional, national, or international market condi-
tions. 
(5) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
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SEC. 203. JURISDICTION OF THE COMMODITY FUTURES 
TRADING COMMISSION EXTENDED TO DE-
RIVATIVES INVOLVING ENERGY COMMOD-
ITIES. 
(a) REMOVAL OF ENERGY COMMODITIES FROM DEF-
INITION OF EXEMPT COMMODITY.—Section 1(a)(14) of 
the Commodity Exchange Act (7 U.S.C. 1(a)(14)) is 
amended by inserting ‘‘, an energy commodity,’’ after ‘‘ex-
cluded commodity’’. 
(b) ENERGY COMMODITY DEFINED.—Section 1(a) of 
the Commodity Exchange Act (7 U.S.C. 1(a)) is amend-
ed— 
(1) by redesignating paragraphs (13) through 
(34) as paragraphs (14) though (35), respectively; 
and 
(2) by inserting after paragraph (12) the fol-
lowing: 
‘‘(13) ENERGY COMMODITY.—The term ‘energy 
commodity’ means— 
‘‘(A) coal; 
‘‘(B) crude oil, gasoline, diesel fuel, heat-
ing oil, and propane; 
‘‘(C) electricity; 
‘‘(D) natural gas; and 
‘‘(E) any other commodity (other than an 
excluded commodity, a metal, or an agricultural 
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commodity) that is used as a source of energy, 
as the Commission deems appropriate.’’. 
SEC. 204. ENERGY EMERGENCY AND ADDITIONAL PRICE 
GOUGING ENFORCEMENT. 
During any energy emergency declared by the Presi-
dent under section 204 of this title, it is unlawful for any 
supplier to sell, or offer to sell crude oil, gasoline, natural 
gas, petroleum distillates, or biofuel subject to that dec-
laration in, or for use in, the area to which that declara-
tion applies at an unconscionably excessive price. 
SEC. 205. PRESIDENTIAL DECLARATION OF ENERGY EMER-
GENCY. 
(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, petroleum distillates, or biofuel due 
to a disruption in the national or regional distribution sys-
tem for crude oil, gasoline, natural gas, petroleum dis-
tillates, or biofuel (including such a shortage related to 
a major disaster (as defined in section 102(2) of the Rob-
ert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5122(2)))), or significant pricing anoma-
lies in national energy markets for crude oil, gasoline, nat-
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ural gas, petroleum distillates, or biofuel the President 
may declare that a Federal energy emergency exists. 
(b) SCOPE AND DURATION.—The emergency declara-
tion shall specify— 
(1) the period, not to exceed 30 days, for which 
the declaration applies; 
(2) the circumstance or condition necessitating 
the declaration; 
(3) the area or region to which it applies which 
may not be limited to a single State; and 
(4) the product or products to which it applies. 
(c) EXTENSIONS.—The President may— 
(1) extend a declaration under subsection (a) 
for a period of not more than 30 days; 
(2) extend such a declaration more than once; 
and 
(3) discontinue such a declaration before its ex-
piration. 
SEC. 206. ENFORCEMENT BY THE FEDERAL TRADE COM-
MISSION. 
(a) ENFORCEMENT.—This title shall be enforced by 
the Federal Trade Commission in the same manner, by 
the same means, and with the same jurisdiction as though 
all applicable terms of the Federal Trade Commission Act 
were incorporated into and made a part of this title. In 
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enforcing section 203 of this title, the Commission shall 
give priority to enforcement actions concerning companies 
with total United States wholesale or retail sales of crude 
oil, gasoline, natural gas, petroleum distillates, and biofuel 
in excess of $500,000,000 per year but shall not exclude 
enforcement actions against companies with total United 
States wholesale sales of $500,000,000 or less per year. 
(b) VIOLATION IS TREATED AS UNFAIR OR DECEP-
TIVE ACT OR PRACTICE.—The violation of any provision 
of this title shall be treated as an unfair or deceptive act 
or practice proscribed under a rule issued under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)). 
(c) COMMISSION ACTIONS.—Following the declara-
tion of an energy emergency by the President under sec-
tion 204 of this title, the Commission shall— 
(1) maintain within the Commission— 
(A) a toll-free hotline that a consumer may 
call to report an incident of price gouging in the 
affected area; and 
(B) a program to develop and distribute to 
the public informational materials to assist resi-
dents of the affected area in detecting, avoid-
ing, and reporting price gouging; 
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(2) consult with the Attorney General, the 
United States Attorney for the districts in which a 
disaster occurred (if the declaration is related to a 
major disaster), and State and local law enforcement 
officials to determine whether any supplier in the af-
fected area is charging or has charged an uncon-
scionably excessive price for crude oil, gasoline, pe-
troleum distillates, or biofuel in the affected area; 
and 
(3) conduct investigations as appropriate to de-
termine whether any supplier in the affected area 
has violated section 203 of this title, and upon such 
finding, take any action the Commission determines 
to be appropriate to remedy the violation. 
SEC. 207. ENFORCEMENT BY STATE ATTORNEYS 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 203 of this title, or to impose the 
civil penalties authorized by section 207 for violations of 
section 203, 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 supplier engaged in the sale or resale, at 
retail or wholesale, or distribution of crude oil, gasoline, 
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petroleum distillates, or biofuel in violation of section 203 
of this title. 
(b) NOTICE.—The State shall serve written notice to 
the Commission of any civil action under subsection (a) 
prior to initiating the action. The notice shall include a 
copy of the complaint to be filed to initiate the civil action, 
except that if it is not feasible for the State to provide 
such prior notice, the State shall provide such notice im-
mediately upon instituting the civil action. 
(c) AUTHORITY TO INTERVENE.—Upon receiving the 
notice required by subsection (b), the Commission may in-
tervene in the civil action and, upon intervening— 
(1) may be heard on all matters arising in such 
civil action; and 
(2) may 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 ad-
minister oaths or affirmations or to compel the attendance 
of witnesses or the production of documentary and other 
evidence. 
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(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 Commission has instituted 
a civil action or an administrative action for violation of 
this title, a State attorney general, or official or agency 
of a State, may not bring an action under this section 
during the pendency of that action against any defendant 
named in the complaint of the Commission or the other 
agency for any violation of this title alleged in the Com-
mission’s civil or administrative action. 
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(g) NO PREEMPTION.—Nothing contained in this 
section shall prohibit an authorized State official from pro-
ceeding in State court to enforce a civil or criminal statute 
of that State. 
SEC. 208. PENALTIES. 
(a) CIVIL PENALTY.— 
(1) IN GENERAL.—In addition to any penalty 
applicable under the Federal Trade Commission Act, 
any supplier that violates section 203 of this title is 
punishable by a civil penalty of not more than 3 
times the profit. 
(2) METHOD.—The penalties provided by para-
graph (1) shall be obtained in the same manner as 
civil penalties imposed under section 5 of the Fed-
eral 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 court shall take into consideration, 
among other factors, the seriousness of the vio-
lation and the efforts of the person committing 
the violation to remedy the harm caused by the 
violation in a timely manner. 
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(b) CRIMINAL PENALTY.—Violation of section 203 of 
this title is punishable by a fine of not more than 
$5,000,000, imprisonment for not more than 5 years, or 
both. 
SEC. 209. EFFECT ON OTHER LAWS. 
(a) OTHER AUTHORITY
OF
THE COMMISSION.— 
Nothing in this title shall be construed to limit or affect 
in any way the Commission’s authority to bring enforce-
ment 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 title preempts any 
State law. 
TITLE III—NO OIL PRODUCING 
AND EXPORTING CARTELS 
SEC. 301. NO OIL PRODUCING AND EXPORTING CARTELS 
ACT OF 2008. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘No Oil Producing and Exporting Cartels Act of 2008’’ 
or ‘‘NOPEC’’. 
(b) SHERMAN ACT.—The Sherman Act (15 U.S.C. 
1 et seq.) is amended by adding after section 7 the fol-
lowing: 
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‘‘SEC. 7A. OIL PRODUCING CARTELS. 
‘‘(a) IN GENERAL.—It shall be illegal and a violation 
of this Act for any foreign state, or any instrumentality 
or agent of any foreign state, to act collectively or in com-
bination with any other foreign state, any instrumentality 
or agent of any other foreign state, or any other person, 
whether by cartel or any other association or form of co-
operation or joint action— 
‘‘(1) to limit the production or distribution of 
oil, natural gas, or any other petroleum product; 
‘‘(2) to set or maintain the price of oil, natural 
gas, or any petroleum product; or 
‘‘(3) to otherwise take any action in restraint of 
trade for oil, natural gas, or any petroleum product; 
when such action, combination, or collective action has a 
direct, substantial, and reasonably foreseeable effect on 
the market, supply, price, or distribution of oil, natural 
gas, or other petroleum product in the United States. 
‘‘(b) SOVEREIGN IMMUNITY.—A foreign state en-
gaged in conduct in violation of subsection (a) shall not 
be immune under the doctrine of sovereign immunity from 
the jurisdiction or judgments of the courts of the United 
States in any action brought to enforce this section. 
‘‘(c) INAPPLICABILITY
OF ACT
OF STATE DOC-
TRINE.—No court of the United States shall decline, 
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