Simpson Takes Action on Gas Prices

Simpson Takes Action on Gas Prices

Idaho Congressman Mike Simpson, a member of the House Appropriations Subcommittee on Energy and Water Development, today supported two House measures aimed at addressing the skyrocketing cost of motor fuels.

H.R. 5254, the Refinery Permit Process Scheduling Act, would help streamline the permitting process for new refineries by better coordinating the actions of the various federal and state agencies involved in the process. While some refineries have increased their capacity, no new U.S. refineries have been built in the past 30 years and many experts point to refinery capacity as a major component of increased fuel prices. H.R. 5254 failed to garner the two-thirds margin required to approve a measure under an expedited house procedure.

"There is simply no doubt that the onerous regulatory process required to build a refinery has deterred new construction and helped contribute to high fuel prices," said Simpson. "This bill would help streamline the agency approval process and give refiners some level of comfort that their initial investments in new refineries will not be wasted money. We have to build new refineries as soon as possible if we are going to stabilize gasoline prices. I'm disappointed this legislation did not enjoy broader support among Congressional Democrats."

H.R. 5253, the Federal Energy Price Protection Act, prohibits price gouging—at any time—in the markets for gasoline, diesel fuel, crude oil, home heating oil and biofuels. The legislation directs the Federal Trade Commission (FTC) to define "price gouging" and outlines strong civil and criminal enforcement roles for the FTC, the U.S. Attorney General, the Justice Department, and states' attorney general. Wholesale violations are punishable by up to $150 million in fines and two years in jail, while retail violations are punishable by up to $2 million in fines and two years in jail. H.R. 5253 passed the House by a vote of 389-34.

"Unfortunately, there are those in our society who see the energy crisis as an opportunity for ill-gotten gains," said Simpson. "Price gouging is a deplorable activity that must be aggressively prosecuted and punished. This legislation sends a strong message to price gougers that their days of unseemly profits are soon coming to an end."

http://www.house.gov/list/press/id02_simpson/gas_prices.html