proclamation issued under paragraph (2) dur-
ing a 30-day period following the issuance of 
such proclamation increased over the quantity 
that that person produced, distributed, or sold 
during the 30 days prior to such proclamation, 
taking into account usual seasonal demand vari-
ations. 
(b) DEFINITIONS.—As used in this section— 
(1) the term ‘‘wholesale’’, with respect to sales 
of gasoline or other petroleum distillates, means ei-
ther truckload or smaller sales of gasoline or petro-
leum distillates where title transfers at a product 
terminal or a refinery, and dealer tank wagon sales 
of gasoline or petroleum distillates priced on a deliv-
ered basis to retail outlets; and 
(2) the term ‘‘retail’’, with respect to sales of 
gasoline or other petroleum distillates, includes all 
sales to end users such as motorists as well as all 
direct sales to other end users such as agriculture, 
industry, residential, and commercial consumers. 
SEC. 303. ENFORCEMENT BY THE FEDERAL TRADE COM-
MISSION. 
(a) ENFORCEMENT BY FTC.—A violation of section 
302 shall be treated as a violation of a rule defining an 
unfair or deceptive act or practice prescribed under section 
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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 title 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 
title. In enforcing section 302 of this title, the Commission 
shall give priority to enforcement actions concerning com-
panies with total United States wholesale or retail sales 
of gasoline and other petroleum distillates in excess of 
$10,000,000,000 per year. 
(b) CIVIL PENALTIES.— 
(1) IN
GENERAL.—Notwithstanding the pen-
alties set forth under the Federal Trade Commission 
Act, any person who violates section 302 with actual 
knowledge or knowledge fairly implied on the basis 
of objective circumstances shall be subject to— 
(A) a civil penalty of not more than 3 
times the amount of profits gained by such per-
son through such violation; or 
(B) a civil penalty of not more than 
$100,000,000. 
(2) METHOD.—The penalties provided by para-
graph (1) shall be obtained in the same manner as 
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civil penalties obtained 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. 
SEC. 304. CRIMINAL PENALTIES. 
(a) IN GENERAL.—In addition to any penalty appli-
cable under section 303, any person who violates section 
302 shall be fined under title 18, United States Code, in 
an amount not to exceed $500,000,000. 
(b) ENFORCEMENT.—The criminal penalty provided 
by subsection (a) may be imposed only pursuant to a 
criminal action brought by the Attorney General or other 
officer of the Department of Justice. The Attorney Gen-
eral shall give priority to enforcement actions concerning 
companies with total United States wholesale or retail 
sales of gasoline and other petroleum distillates in excess 
of $10,000,000,000 per year. 
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SEC. 305. ENFORCEMENT AT RETAIL LEVEL BY STATE AT-
TORNEYS 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 302 of this title, or to impose the 
civil penalties authorized by section 303(b)(1)(B), when-
ever 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 title or a regulation under this title, involving a 
retail sale. 
(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 
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(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) 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 
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(b), petroleum from the Strategic Petroleum Reserve 
and acquire refined petroleum product. 
(2) PROCEEDS.—If the Secretary acts pursuant 
to paragraph (1), the Secretary shall— 
(A) deposit the cash proceeds from sales 
under subparagraph (A) into the SPR Petro-
leum Account established under section 167 of 
the Energy Policy and Conservation Act (42 
U.S.C. 6247); and 
(B) from the cash proceeds deposited pur-
suant to paragraph (2), withdraw the amount 
necessary to pay for the direct administrative 
and operational costs of the sale and acquisi-
tion, including for acquisition and maintenance 
of, and improvements to, storage facilities. 
(b) AMOUNTS AND SCHEDULE.— 
(1) IN GENERAL.—The sale and acquisition de-
scribed in subsection (a) may require the offer for 
sale of a total quantity of no more than 30,000,000 
barrels of petroleum from the Strategic Petroleum 
Reserve. The sale may commence within 180 days 
after the date of enactment of this Act and may end 
not later than 3 years after such date of enactment. 
In no event shall the Secretary sell barrels of oil 
under subsection (a) that would result in a Strategic 
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Petroleum Reserve that contains fewer than 90 per-
cent of the total amount of barrels in the Strategic 
Petroleum Reserve as of the date of enactment of 
this Act. 
(2) ACQUISITIONS.—If the Secretary acts pur-
suant to subsection (a)(1), the Secretary shall ac-
quire refined petroleum product under this section— 
(A) beginning no sooner than 180 days 
after the date of enactment of this Act; 
(B) ending no later than 5 years after the 
date of enactment of this Act; and 
(C) in a manner so as to minimize both 
the cost to the Federal Government and market 
disruption associated with the acquisition. 
SEC. 405. REPORT TO CONGRESS. 
Not later than 18 months after the commencement 
of any sale authorized pursuant to section 404, the Sec-
retary shall transmit to Congress a report— 
(1) describing the amounts and types of petro-
leum sold and refined petroleum product acquired 
under section 404; 
(2) describing the actions taken for the storage 
of refined petroleum product acquired under section 
404, and identifying any requirements for additional 
facilities; 
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srobinson on DSKHWCL6B1PROD with BILLS
(3) describing efforts the Department of En-
ergy has taken to ensure that distributors and im-
porters are not discouraged from maintaining and 
increasing supplies of refined petroleum products; 
(4) describing actions that the Department of 
Energy has taken and plans to take to ensure qual-
ity of refined petroleum product in the Reserve, in-
cluding the rotation of product stored; and 
(5) analyzing the effects that activities under 
section 404 have had on oil markets. 
SEC. 406. STRATEGIC PETROLEUM RESERVE DRAWDOWN 
AND EXCHANGE IN PUBLIC INTEREST. 
Section 161 of the Energy Policy and Conservation 
Act (42 U.S.C. 6241) is amended by adding at the end 
the following new subsection: 
‘‘(k) PUBLIC INTEREST.— 
‘‘(1) GENERAL AUTHORITY.—If, after consulta-
tion with the Secretary of Energy, the Secretary of 
Defense, and the Chairman of the Federal Trade 
Commission, the President finds that a cir-
cumstance, other than those described in subsections 
(d) or (h) of this section, exists of such significance 
and scope that action under this subsection would be 
warranted to address market manipulation or other-
wise be in the public interest, then the President 
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may instruct the Secretary to drawdown and sell or 
exchange petroleum product from the Reserve under 
this subsection. 
‘‘(2) LIMITATIONS.—Petroleum product from 
the Reserve may not be drawn down or exchanged 
under this subsection— 
‘‘(A) in excess of an aggregate of 
30,000,000 barrels with respect to each cir-
cumstance warranting a finding under para-
graph (1); or 
‘‘(B) in an amount that would lower the 
aggregate level of petroleum product in the Re-
serve to less than 600,000,000 barrels of petro-
leum product. 
‘‘(3) REPORT
TO
CONGRESS.—At the end of 
any month during which there is a drawdown and 
sale of petroleum products from the Reserve under 
this subsection, the Secretary shall transmit a report 
to the Congress containing an account of the draw-
down and sale, along with an assessment of the ef-
fects of the drawdown and sale. 
‘‘(4) REPLENISHMENT.—In the case of a draw-
down and sale or exchange under this subsection, 
the Secretary shall provide for the timely replenish-
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ment of the Reserve in accordance with the objec-
tives and procedures set forth in section 160.’’. 
Æ 
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