To protect the welfare of consumers by prohibiting price gouging by merchants with respect to gasoline and other fuels during certain abnormal market disruptions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Energy Price Protection 
Act''.

SEC. 2. PROTECTION OF CONSUMERS AGAINST PRICE GOUGING.

    It shall be unlawful for any supplier to increase the price at 
which that supplier sells, or offers to sell, crude oil, gasoline, or 
petroleum distillates in an area covered by a Presidential proclamation 
issued under section 4(a)(1) by an unconscionable amount during the 
period beginning on the date the proclamation is issued and ending on 
the date specified in the proclamation.

SEC. 3. JUSTIFIABLE PRICE INCREASES.

    (a) In General.--The prohibition in section 2 does not apply to the 
extent that the increase in the price of the crude oil, gasoline, or 
petroleum distillate is substantially attributable to--
            (1) an increase in the wholesale cost of crude oil, 
        gasoline, or petroleum distillates to a supplier;
            (2) an increase in the replacement costs for crude oil, 
        gasoline, or petroleum distillate sold;
            (3) an increase in operational costs; or
            (4) local, regional, national, or international market 
        conditions.
    (b) Other Mitigating Factors.--In determining whether a violation 
of section 2 has occurred, there also shall be taken into account, 
among other factors, the price that would reasonably equate supply and 
demand in a competitive and freely functioning market and whether the 
price at which the crude oil, gasoline, or petroleum distillate was 
sold reasonably reflects other additional costs or risks, not within 
the control of the seller, that were paid or incurred by the seller.

SEC. 4. EMERGENCY PROCLAMATIONS AND ORDERS.

    (a) Presidential Emergency Proclamations.--The President may issue 
an emergency proclamation when an abnormal market disruption has 
occurred or is reasonably expected to occur.
    (b) Scope and Duration.--
            (1) In general.--The emergency proclamation or order shall 
        specify with particularity--
                    (A) the period for which the proclamation or order 
                applies;
                    (B) the event, circumstance, or condition that is 
                the reason such a proclamation or order is determined 
                to be necessary; and
                    (C) the geographic area or region to which it 
                applies.
            (2) Limitations.--An emergency proclamation or an order 
        under subsection (a)--
                    (A) may not apply for a period of more than 30 
                consecutive days (renewable for a consecutive period of 
                not more than 30 days); and
                    (B) may apply to a period of not more than 7 days 
                preceding the occurrence of an event, circumstance, or 
                condition that is the reason such a proclamation or 
                order is necessary.

SEC. 5. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

    (a) Unfair or Deceptive Act or Practice.--Section 2 of this Act 
shall be treated as a violation of a rule defining an unfair 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)).
    (b) Actions by the Commission.--The Commission shall prevent any 
supplier from violating this Act in the same manner, by the same means, 
and with the same jurisdiction, powers, and duties as though all 
applicable terms and provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) were incorporated into and made a part of this Act. 
Any entity that violates any provision of this Act is subject to the 
penalties and entitled to the privileges and immunities provided in the 
Federal Trade Commission Act in the same manner, by the same means, and 
with the same jurisdiction, power, and duties as though all applicable 
terms and provisions of the Federal Trade Commission Act were 
incorporated into and made a part of this Act.
    (c) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Federal Trade Commission shall prescribe 
such regulations as may be necessary or appropriate to implement this 
Act.

SEC. 6. PENALTIES.

    (a) Civil Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act any supplier who 
        violates this Act is punishable by a civil penalty of--
                    (A) not more than $500,000, in the case of an 
                independent small business marketer of gasoline (within 
                the meaning of section 324(c) of the Clean Air Act (42 
                U.S.C. 7625(c)); and
                    (B) not more than $5,000,000 in the case of any 
                other supplier.
            (2) Method of assessment.--The penalty provided by 
        paragraph (1) shall be assessed in the same manner as civil 
        penalties imposed under section 5 of the Federal Trade 
        Commission Act (15 U.S.C. 45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) the Commission shall take into consideration 
                the seriousness of the violation and the efforts of the 
                supplier committing the violation to remedy the harm 
                caused by the violation in a timely manner; and
                    (B) each determination that the price at which 
                crude oil, gasoline, or other petroleum distillate has 
                been sold or offered for sale in an area and during a 
                period covered by a proclamation or order issued under 
                section 4 was increased by an unconscionable amount 
                shall be treated as a single violation.
    (b) Criminal Penalty.--
            (1) In general.--In addition to any penalty applicable 
        under the Federal Trade Commission Act, the violation of this 
        Act is punishable by a fine of not more than $1,000,000, 
        imprisonment for not more than 2 years, or both.
            (2) Enforcement.--The criminal penalty provided by 
        paragraph (1) may be imposed only pursuant to a criminal action 
        brought by the Attorney General or other officer of the 
        Department of Justice.

SEC. 7. LOW INCOME ENERGY ASSISTANCE.

    Amounts collected in fines and penalties under section 6 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 appropriations Acts fund shall be used to provide assistance 
under the Low Income Home Energy Assistance Program administered by the 
Secretary of Health and Human Services.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Abnormal market disruption.--The term ``abnormal market 
        disruption'' means there is a reasonable likelihood that, in 
        the absence of a proclamation under section 4(a), there will be 
        an increase in the average price of crude oil, gasoline, or 
        petroleum distillates as a result of a change in the market, 
        whether actual or imminently threatened, resulting from extreme 
        weather, a natural disaster, strike, civil disorder, war, 
        military action, a national or local emergency, or other 
        similar cause, that adversely affects the availability or 
        delivery of crude oil, gasoline, or petroleum distillates.
            (2) Supplier.--The term ``supplier'' means any person 
        engaged in the trade or business of selling, reselling, at 
        retail or wholesale, or distributing crude oil, gasoline, or 
        petroleum distillates.
            (3) Replacement costs.--The term ``replacement costs'' 
        means, with respect to a supplier to whom sections 2 and 3 
        apply, costs to that supplier determined by referencing 
        either--
                    (A) the actual or reasonably anticipated 
                replacement cost as evidenced by bills of sale, 
                invoices, or other appropriate documentation; or
                    (B) the cost for crude oil, gasoline, or other 
                petroleum distillates in the relevant market at the 
                time of the sale or offer for sale that is the subject 
                of a violation of section 2, plus actual storage, 
                transportation, and delivery costs.
            (4) Unconscionable amount.--The term ``unconscionable 
        amount'' means, with respect to any supplier to whom section 2 
        applies, a significant increase in the price at which crude 
        oil, gasoline, or petroleum distillates are sold or offered for 
        sale by that supplier that increases the price, for the same 
        grade of crude oil, gasoline, or petroleum distillate, to an 
        amount that--
                    (A) substantially exceeds the average price at 
                which crude oil, gasoline, or petroleum distillates 
                were sold or offered for sale by that supplier during 
                the 30-day period immediately preceding the sale or 
                offer;
                    (B) substantially exceeds the average price at 
                which crude oil, gasoline, or petroleum distillates 
                were sold or offered for sale by that person's 
                competitors in the area and during the period for which 
                the emergency proclamation applies; and
                    (C) cannot be justified by taking into account the 
                factors described in section 3.

SEC. 9. EFFECTIVE DATE.

    This Act shall take effect on the date on which a final rule issued 
by the Federal Trade Commission under section 5(c) is published in the 
Federal Register.

Summary: Federal Energy Price Protection Act - Prohibits a supplier from increasing the price for crude oil, gasoline, or petroleum distillates by an unconscionable amount in an area during the period covered by a Presidential proclamation that an abnormal market disruption has occurred.

 States that such prohibition does not apply to the extent that the price increase is substantially attributable to: (1) an increase in the wholesale cost of crude oil, gasoline, or petroleum distillates to a supplier; (2) an increase in the replacement costs for crude oil, gasoline, or petroleum distillate sold; (3) an increase in operational costs; or (4) local, regional, national, or international market conditions.

States that a violation of this Act shall: (1) be treated as a violation of a rule defining an unfair or deceptive act or practice of the Federal Trade Commission Act; and (2) be subject to civil and criminal penalties.

States that fines and penalties collected under this Act shall be deposited in the Consumer Relief Trust Fund to provide assistance under the Low Income Home Energy Assistance (LIHEAP) Program administered by the Secretary of Health and Human Services.