Consumer Fuel Price Gouging Prevention Act
Bill: H.R.7688 | Sponsor: Rep. Schrier, Kim (D-WA)
Policy area: Commerce

Summary:
Consumer Fuel Price Gouging Prevention Act  This bill prohibits any person from selling, during a proclaimed energy emergency, a consumer fuel at a price that (1) is unconscionably excessive, and (2) indicates that the seller is exploiting the emergency to increase prices unreasonably. The President may issue a proclamation of such an emergency that specifies the consumer fuel and geographic area covered and how long the proclamation applies.
The bill provides for enforcement of these provisions by the Federal Trade Commission and state attorneys general. Civil penalties collected by the commission through such enforcement must be used to provide assistance under the Low Income Home Energy Assistance Program.
Additionally, the commission must investigate whether the price of gasoline is being manipulated through reducing refinery capacity or other manipulative practices. The commission also must establish a Transportation Fuel Monitoring and Enforcement Unit to collect, monitor, and analyze crude oil and transportation fuel market data.
The bill further includes specified transportation fuels within the prohibitions against (1) manipulative market practices, and (2) reporting false price information. It also increases the penalty for violations of those prohibitions.
Finally, the Energy Information Administration must survey energy companies to facilitate transparent and competitive crude oil and transportation fuel markets.



To protect consumers from price-gouging of consumer fuels, and for 
                            other purposes.

    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 ``Consumer Fuel Price Gouging 
Prevention Act''.

SEC. 2. UNCONSCIONABLE PRICING OF CONSUMER FUELS DURING EMERGENCIES.

    (a) Unconscionable Pricing.--
            (1) In general.--It shall be unlawful for any person to 
        sell a consumer fuel, at wholesale or retail, in an area and 
        during a period of an energy emergency covered by a 
        proclamation issued under paragraph (2) at a price that--
                    (A) is unconscionably excessive; and
                    (B) indicates the seller is exploiting the 
                circumstances related to an energy emergency to 
                increase prices unreasonably.
            (2) Energy emergency proclamation.--
                    (A) In general.--The President may issue an energy 
                emergency proclamation for any area within the 
                jurisdiction of the United States, during which the 
                prohibition in paragraph (1) shall apply, that includes 
                the geographic area covered, the consumer fuel covered, 
                and the time period that such proclamation shall be in 
                effect.
                    (B) Duration.--The proclamation--
                            (i) may not apply for a period of more than 
                        30 consecutive days, but may be renewed for 
                        such consecutive periods, each not to exceed 30 
                        days, as the President determines appropriate; 
                        and
                            (ii) may include a period of time not to 
                        exceed 1 week before a reasonably foreseeable 
                        emergency.
            (3) Factors considered.--
                    (A) In general.--In determining whether a person 
                has violated paragraph (1), there shall be taken into 
                account, among other factors, the aggravating factors 
                described in subparagraph (B) and the mitigating factor 
                described in subparagraph (C).
                    (B) Aggravating factors.--The aggravating factors 
                described in this subparagraph are the following:
                            (i) Whether the amount charged by such 
                        person grossly exceeds the average price at 
                        which the consumer fuel was offered for sale by 
                        such person during--
                                    (I) the 30-day period before the 
                                date on which the proclamation was 
                                issued; or
                                    (II) another appropriate benchmark 
                                period, as determined by the 
                                Commission.
                            (ii) Whether the amount charged by such 
                        person grossly exceeds the price at which the 
                        same or a similar consumer fuel was readily 
                        obtainable in the same area from other sellers 
                        during the energy emergency period.
                    (C) Mitigating factor.--The mitigating factor 
                described in this subparagraph is whether the quantity 
                of any consumer fuel such person produced, distributed, 
                or sold in an area covered by the proclamation during 
                the 30-day period following the date on which the 
                proclamation was issued increased over the quantity 
                such person produced, distributed, or sold during the 
                30-day period before the date on which the proclamation 
                was issued, taking into account any usual seasonal 
                demand variation.
    (b) Affirmative Defense.--It shall be an affirmative defense in any 
civil action or administrative action to enforce subsection (a), with 
respect to the sale, at wholesale or retail, of a consumer fuel by a 
person, that the increase in the price of such consumer fuel reasonably 
reflects additional costs that were paid, incurred, or reasonably 
anticipated by such person, or reasonably reflects additional risks 
taken by such person, to produce, distribute, obtain, or sell such 
consumer fuel under the circumstances.
    (c) Rule of Construction.--This section may not be construed to 
cover a transaction on a futures market.
    (d) Enforcement.--
            (1) Federal trade commission.--A violation of subsection 
        (a) 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)). The Federal Trade Commission shall enforce this 
        section 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 were 
        incorporated into and made a part of this section. In enforcing 
        subsection (a), the Commission shall give priority to 
        enforcement actions concerning companies with total United 
        States wholesale or retail sales of consumer fuels in excess of 
        $500,000,000 per year.
            (2) Enforcement at retail level by state attorneys 
        general.--
                    (A) In general.--If the chief law enforcement 
                officer of a State, or an official or agency designated 
                by a State, has reason to believe that any person has 
                violated or is violating subsection (a) involving a 
                retail sale, the attorney general, official, or agency 
                of the State, in addition to any authority it may have 
                to bring an action in State court under its laws, may 
                bring a civil action in any appropriate United States 
                district court or in any other court of competent 
                jurisdiction to--
                            (i) enjoin further such violation by such 
                        person;
                            (ii) enforce compliance with such 
                        subsection;
                            (iii) obtain civil penalties; and
                            (iv) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State.
                    (B) Notice.--The State shall serve written notice 
                to the Commission of any civil action under 
                subparagraph (A) before initiating such civil action. 
                The notice 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 receipt of the 
                notice required by subparagraph (B), the Commission may 
                intervene in such civil action and upon intervening--
                            (i) be heard on all matters arising in such 
                        civil action; and
                            (ii) file petitions for appeal of a 
                        decision in such civil action.
                    (D) Construction.--For purposes of bringing any 
                civil action under subparagraph (A), nothing in this 
                paragraph shall prevent the attorney general of a State 
                from exercising the powers conferred on the attorney 
                general by the laws of such State to conduct 
                investigations or to administer oaths or affirmations 
                or to compel the attendance of witnesses or the 
                production of documentary and other evidence.
                    (E) Limitation on state action while federal action 
                is pending.--If the Commission has instituted a civil 
                action or an administrative action for violation of 
                subsection (a), a State attorney general, or official 
                or agency of a State, may not bring an action under 
                this paragraph during the pendency of that action 
                against any defendant named in the complaint of the 
                Commission or another agency for any violation of this 
                Act alleged in the complaint.
                    (F) Rule of construction.--This paragraph may not 
                be construed to prohibit an authorized State official 
                from proceeding in State court to enforce a civil or 
                criminal statute of such State.
    (e) Low Income Energy Assistance.--
            (1) Deposit of funds.--Amounts collected in any penalty 
        under subsection (d)(1) shall be deposited in a separate fund 
        in the Treasury to be known as the Consumer Relief Trust Fund.
            (2) Use of funds.--To the extent provided for in advance in 
        appropriations Acts, the amounts deposited into the fund shall 
        be used to provide assistance under the Low Income Home Energy 
        Assistance Program described in section 2602 of the Low-Income 
        Home Energy Assistance Act of 1981 (42 U.S.C. 8621) 
        administered by the Secretary of Health and Human Services and 
        the Weatherization Assistance Program established under part A 
        of title IV of the Energy Conservation and Production Act (42 
        U.S.C. 6861 et seq.) administered by the Secretary of Energy.
    (f) Effect on Other Laws.--
            (1) Other authority of commission.--Nothing in this section 
        may be construed to limit the authority of the Commission under 
        the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any 
        other provision of law.
            (2) State law.--Nothing in this section preempts any State 
        law.
    (g) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Consumer fuel.--The term ``consumer fuel'' includes 
        gasoline, distillate fuel oil, jet fuel, liquid propane, 
        aviation gasoline, compressed natural gas, and biofuel 
        (including ethanol, biomass-based diesel, and renewable 
        blending components) used for transportation fuels, and home 
        heating oil and liquid propane used for residential heating or 
        residential energy generation.
            (3) Retail.--The term ``retail'', with respect to the sale 
        of a consumer fuel, 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.
            (4) Wholesale.--The term ``wholesale'', with respect to the 
        sale of a consumer fuel, means sale to any person for resale.

SEC. 3. 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. 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.
            ``(8) Authorization of appropriations.--There are 
        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.''.

SEC. 5. FTC INVESTIGATION AND REPORT ON GASOLINE PRICES.

    (a) Investigation.--
            (1) In general.--The Federal Trade Commission shall conduct 
        an investigation to determine if the price of gasoline is being 
        manipulated by reducing refinery capacity or by any other form 
        of market manipulation or artificially increased by price 
        gouging practices.
            (2) Consideration.--In conducting the investigation under 
        paragraph (1), the Federal Trade Commission may consider the 
        impact of mergers and acquisitions in the oil and gas industry, 
        including mergers and acquisitions involving producers, 
        refiners, transporters, and gas stations.
    (b) Report.--Not later than 270 days after the date of the 
enactment of this Act, the Federal Trade Commission shall submit to 
Congress a report on the investigation conducted under subsection (a), 
including a long-term strategy for the Commission and Congress to 
address manipulation of oil and gas markets during times of national or 
international crisis or emergency.
    (c) Exemption From Paperwork Reduction Act.--Chapter 35 of title 
44, United States Code, shall not apply to the collection of 
information under subsection (a).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Federal Trade Commission to carry out this section 
$1,000,000 for fiscal year 2023.

SEC. 6. 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 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).
                            (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.

            Passed the House of Representatives May 19, 2022.

            Attest:

                                                                 Clerk.
117th CONGRESS

  2d Session

                               H. R. 7688

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