Transportation Fuel Market Transparency Act
Bill: S.4217 | Sponsor: Sen. Cantwell, Maria (D-WA)
Policy area: Energy

Summary:
Transportation Fuel Market Transparency Act
This bill expands prohibitions against manipulating fuel markets, establishes a body within the Federal Trade Commission (FTC) to monitor fuel markets to ensure competitiveness, and addresses related issues.
Prohibitions against the manipulation of wholesale fuel markets or reporting false (or misleading) information shall apply to actions related to crude oil and transportation fuel, defined in this bill to include gasoline, distillate fuels, jet fuel, aviation gasoline, and biofuel. Currently, such prohibitions only apply to crude oil, gasoline, and petroleum distillates.
The bill further expands the prohibition on reporting false information to include such information that (1) concerns the supply of, operational actions related to, or output related to wholesale fuel markets; (2) is not required to be reported by law; or (3) affects the analyses or data compiled by a private sector price-reporting agency.
The bill also increases the maximum civil penalty for violating these prohibitions from $1 million to $2 million for each day of the violation.
Furthermore, the bill establishes within the FTC the Transportation Fuel Monitoring and Enforcement Unit. The unit must continuously and comprehensively collect and analyze fuel market data to support competitive market practices, identify market manipulation and other unfair methods of competition, and facilitate enforcement of competition-related statutes.
The Energy Information Administration within the Department of Energy must collect data to facilitate transparent and competitive transportation fuel markets, determine adherence to sanctions, and protect consumers.

To ensure transparent and competitive transportation fuel markets in 
      order to protect consumers from unwarranted price increases.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transportation Fuel Market 
Transparency Act''.

SEC. 2. AMENDMENTS TO THE PROHIBITIONS ON MARKET MANIPULATION AND FALSE 
              INFORMATION PROVISIONS OF THE ENERGY INDEPENDENCE AND 
              SECURITY ACT OF 2007.

    (a) Application to Transportation Fuel.--Subtitle B of title VIII 
of the Energy Independence and Security Act of 2007 (42 U.S.C. 17301 et 
seq.) is amended--
            (1) in section 811, by striking ``gasoline or petroleum 
        distillates'' and inserting ``or transportation fuel'';
            (2) in section 812--
                    (A) in the matter preceding paragraph (1), by 
                striking ``gasoline or petroleum distillates'' and 
                inserting ``or transportation fuel''; and
                    (B) in paragraph (3), by striking ``, gasoline, or 
                petroleum distillates'' and inserting ``or 
                transportation fuel''; and
            (3) by adding at the end the following new section:

``SEC. 816. DEFINITION OF TRANSPORTATION FUEL.

    ``In this subtitle, the term `transportation fuel' includes 
gasoline, distillate fuels (including heating oil), jet fuel, aviation 
gasoline, and biofuel (including ethanol, biomass-based diesel and 
distillates, and renewable blending components).''.
    (b) Prohibition on False Information.--Section 812 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17302) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``wholesale'' and inserting 
                ``supply of, operational actions related to, output 
                related to, or wholesale''; and
                    (B) by striking ``to a Federal department or 
                agency'';
            (2) in paragraph (1), by adding ``and'' at the end;
            (3) by striking paragraph (2) and redesignating paragraph 
        (3), as amended by subsection (a), as paragraph (2); and
            (4) in paragraph (2), as so redesignated, by striking ``the 
        person intended the false or misleading data to affect data 
        compiled by the department or agency'' and inserting ``the 
        false or misleading information reported by the person affected 
        analyses or data compiled by a Federal department or agency or 
        a private sector price-reporting agency''.
    (c) Enforcement.--Section 813(a) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17303(a)) is amended by striking ``This 
subtitle'' and inserting ``Except as otherwise provided in section 814, 
this subtitle''.
    (d) Penalties.--Section 814 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17304) is amended--
            (1) in subsection (a), by striking ``$1,000,000'' and 
        inserting ``$2,000,000''; and
            (2) in subsection (b), by striking ``section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45)'' and inserting 
        ``section 5(m)(1)(A) of the Federal Trade Commission Act (15 
        U.S.C. 45(m)(1)(A))''.

SEC. 3. TRANSPORTATION FUEL MONITORING AND ENFORCEMENT WITHIN THE 
              FEDERAL TRADE COMMISSION.

    (a) Establishment of the Transportation Fuel Monitoring and 
Enforcement Unit.--
            (1) In general.--The Commission shall establish within the 
        Commission the Transportation Fuel Monitoring and Enforcement 
        Unit (in this section referred to as the ``Unit'').
            (2) Duties of the unit.--
                    (A) Primary responsibility.--The primary 
                responsibility of the Unit shall be to assist the 
                Commission in protecting the public interest by 
                continuously and comprehensively collecting, 
                monitoring, and analyzing crude oil and transportation 
                fuel market data in order to--
                            (i) support transparent and competitive 
                        market practices;
                            (ii) identify any market manipulation, 
                        reporting of false information, use of market 
                        power to disadvantage consumers, or other 
                        unfair method of competition; and
                            (iii) facilitate enforcement of penalties 
                        against persons in violation of relevant 
                        statutory prohibitions.
                    (B) Specific duties.--In order to carry out the 
                responsibility under subparagraph (A), the Unit shall 
                assist the Commission in carrying out the following 
                duties:
                            (i) Receiving, compiling, and analyzing 
                        relevant buying and selling activity in order 
                        to identify and investigate anomalous market 
                        trends and suspicious behavior.
                            (ii) Determining whether excessive 
                        concentration or exclusive control of energy-
                        related infrastructure may allow or result in 
                        anti-competitive behaviors.
                            (iii) Gathering evidence of wrongdoing 
                        against any person in violation of the 
                        statutory prohibitions on market manipulation 
                        and false information established in, and 
                        consistent with, subtitle B of title VIII of 
                        the Energy Independence and Security Act of 
                        2007, as amended by section 2, or any other 
                        applicable provisions of the Federal Trade 
                        Commission Act (15 U.S.C. 45 et seq.).
                            (iv) Obtaining a data-sharing agreement 
                        with the Energy Information Administration that 
                        includes the data collected in accordance with 
                        section 205(n) of the Department of Energy 
                        Organization Act (42 U.S.C. 7135), as amended 
                        by section 4.
                            (v) Obtaining data-sharing agreements with 
                        the Commodities Futures Trading Commission, the 
                        Federal Energy Regulatory Commission, and as 
                        necessary and practicable, State energy offices 
                        or commissions, and relevant public and private 
                        data sources that will allow the Commission to 
                        receive and archive information on--
                                    (I) crude oil and transportation 
                                fuel buying and selling activity;
                                    (II) individual physical and 
                                financial market positions of market 
                                participants regarding crude oil and 
                                transportation fuel;
                                    (III) refinery output, capacity, 
                                and inventory levels of crude oil and 
                                transportation fuel;
                                    (IV) imports and exports of crude 
                                oil and transportation fuel within 
                                regions and at levels that could impact 
                                prices faced by consumers;
                                    (V) public announcements by energy 
                                companies of planned pricing or output 
                                decisions regarding crude oil and 
                                transportation fuel; and
                                    (VI) other relevant market 
                                information that will facilitate the 
                                gathering of evidence described in 
                                clause (iii), including sufficient 
                                market information necessary to monitor 
                                for cross-market manipulations that may 
                                include multiple financial and physical 
                                market positions.
                            (vi) Any other information determined 
                        appropriate by the Commission to carry out the 
                        responsibility under subparagraph (A).
    (b) Definitions.--In this section:
            (1) Commission.--Other than in subsection (a)(2)(B)(v), the 
        term ``Commission'' means the Federal Trade Commission.
            (2) Transportation fuel.--The term ``transportation fuel'' 
        includes gasoline, distillate fuels (including heating oil), 
        jet fuel, aviation gasoline, and biofuel (including ethanol, 
        biomass-based diesel and distillates, and renewable blending 
        components).
    (c) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Commission shall promulgate regulations to 
carry out this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Commission such sums as may be necessary for each 
of fiscal years 2022 through 2027 to carry out this section.

SEC. 4. TRANSPORTATION FUEL MARKET TRANSPARENCY.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(n) Transportation Fuel Market Transparency.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Energy company.--The term `energy company' 
                means a person (as defined in section 11(e) of the 
                Energy Supply and Environmental Coordination Act of 
                1974 (15 U.S.C. 796(e))) that--
                            ``(i) owns or controls commercial amounts 
                        of crude oil or transportation fuel; or
                            ``(ii) is engaged in--
                                    ``(I) exploration for, or 
                                development of, crude oil;
                                    ``(II) extraction of crude oil;
                                    ``(III) refining or otherwise 
                                processing crude oil or transportation 
                                fuel;
                                    ``(IV) commercial storage of crude 
                                oil or transportation fuel;
                                    ``(V) transportation by any means 
                                of commercial amounts of crude oil or 
                                transportation fuel; or
                                    ``(VI) wholesale or retail 
                                distribution of crude oil or 
                                transportation fuel.
                    ``(B) Transportation fuel.--The term 
                `transportation fuel' means--
                            ``(i) gasoline;
                            ``(ii) distillate fuels, including heating 
                        oil;
                            ``(iii) jet fuel;
                            ``(iv) aviation gasoline; and
                            ``(v) biofuel, including ethanol, biomass-
                        based diesel and distillates, and renewable 
                        blending components.
            ``(2) Purpose.--The purpose of this subsection is to 
        collect data necessary to facilitate transparent and 
        competitive transportation fuel markets, determine adherence to 
        relevant international sanctions, and protect consumers.
            ``(3) Surveys.--
                    ``(A) In general.--The Administrator shall conduct 
                surveys of energy companies to collect detailed and 
                timely information on United States crude oil and 
                transportation fuel markets.
                    ``(B) Exemption.--The Administrator shall exempt an 
                energy company from participating in the surveys 
                conducted under subparagraph (A) if the energy company 
                has a de minimis market presence or impact, as 
                determined by the Administrator.
            ``(4) Data collected.--
                    ``(A) In general.--The surveys conducted under 
                paragraph (3) shall collect information on a national, 
                regional, State, and energy company basis.
                    ``(B) Information.--The surveys conducted under 
                paragraph (3) shall collect the following information 
                with respect to crude oil and transportation fuel, as 
                applicable:
                            ``(i) The quantity of crude oil and 
                        transportation fuel imported and exported.
                            ``(ii) The quantity of crude oil and 
                        transportation fuel refined, stored, and 
                        transported.
                            ``(iii) The quantity of crude oil and 
                        transportation fuel entering final retail and 
                        commercial commerce.
                            ``(iv) The quantity of crude oil and 
                        transportation fuel purchased and sold at any 
                        upstream point between energy companies, 
                        including off-exchange bilateral sales and 
                        sales between subsidiaries of the same energy 
                        company.
                            ``(v) Market price data for the 
                        transactions described in clauses (i) through 
                        (iv).
                            ``(vi) Submissions to relevant price 
                        reporting entities.
                            ``(vii) Any other such data, analyses, or 
                        evaluations that the Administrator determines 
                        is necessary to achieve the purpose described 
                        in paragraph (2).
                    ``(C) Origin of fuel.--In obtaining the information 
                described in subparagraph (B), the Administrator shall, 
                to the maximum extent practicable, track and publish 
                the country of original production of crude oil and 
                transportation fuel that may have been resold, refined, 
                blended, stored, or otherwise been exchanged or sold 
                before being imported or exported into the United 
                States.
                    ``(D) Other sources.--The Administrator may, when 
                practicable and determined reliable by the 
                Administrator, obtain information described in 
                subparagraph (B) from private price publishers and 
                providers of trade processing services.
            ``(5) Minimizing reporting burdens.--The Administrator 
        shall seek to minimize any burdens on energy companies in 
        reporting information to the Administrator, including by 
        automating data submission practices for data collected under 
        the surveys conducted under paragraph (3).
            ``(6) Public distribution.--
                    ``(A) In general.--To the maximum extent 
                practicable, subject to this paragraph, the 
                Administrator shall consistently and promptly make 
                publicly available analyses of the results of the data 
                collected pursuant to this subsection in a form and 
                manner easily adaptable for public use and machine 
                analysis.
                    ``(B) Geographical specificity.--Analyses published 
                under subparagraph (A)--
                            ``(i) shall be geographically specific 
                        enough to provide meaningful differentiation 
                        between fuel markets; and
                            ``(ii) shall not organize geographical data 
                        in the form of Petroleum Administration for 
                        Defense Districts or other geographic 
                        aggregations lacking sufficient resolution to 
                        ascertain regionally specific market trends or 
                        disparities.
                    ``(C) Nondisclosure.--Any analysis published under 
                subparagraph (A) shall not disclose matters exempted 
                from mandatory disclosure under section 552(b) of title 
                5, United States Code.
            ``(7) Data-sharing agreements.--
                    ``(A) Federal trade commission.--Notwithstanding 
                subchapter III of chapter 35 of title 44, United States 
                Code (commonly known as the `Confidential Information 
                Protection and Statistical Efficiency Act of 2018'), 
                not later than 1 year after the date of enactment of 
                this subsection, the Administrator shall enter into a 
                data-sharing agreement with the Federal Trade 
                Commission that shall allow any information collected 
                pursuant to this subsection to be requested by and 
                transferred to the Federal Trade Commission without 
                limitation or delay.
                    ``(B) Other federal agencies.--The Administrator 
                may enter into data-sharing agreements with other 
                Federal agencies that have energy-related policy 
                decision-making responsibilities, including the 
                Commodity Futures Trading Commission, the Federal 
                Energy Regulatory Commission, and the Securities and 
                Exchange Commission.''.
            ``(9) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administrator to carry out this 
        section such sums as are necessary for each of fiscal years 
        2022 through 2027.''.
                                 <all>