The Consumer Energy Relief Act 2008

Floor Speech

* Madam Speaker, today I rise to introduce H.R. 6653, the Consumer Energy Relief Act. This legislation will provide Americans short- and long-term relief from rising energy costs by implementing a comprehensive strategy to reduce America's oil dependence while also driving down the price of gasoline.

* In January 2001, when President Bush took office, the price of oil was $30 per barrel, and the average price for a gallon of gasoline was about $1.50. After 7 1/2 years of energy policies spearheaded by President Bush, Vice President Cheney, two oil men in their own right, and their friends in the oil industry, oil companies in the United States are earning record profits, the cost per barrel of oil has spiked to $134 and Americans are spending at least $3.96 on a gallon of gasoline.

* Energy costs this high place a tremendous burden on the American people at a time when our economy is already on the verge of recession. The Consumer Relief Act takes important steps to reduce gas prices, eliminate our dependence on oil for fuel, and provide real relief to the American people by addressing the root causes of the spike in energy costs.

* First, it will impose tighter regulations on excessive speculation. While the speculation market is a necessary function of America's economy, the deregulation of the market under the Bush administration has allowed the oil and gas market to be manipulated. Experts have testified that excessive speculation may be responsible for inflating prices by as much as $20 to $60 more per barrel. By regulating the speculation market, this bill will restore stability to international commodity trading and protect the American people from exorbitant gas prices.

* Secondly, this bill will grant the Federal Trade Commission the authority to investigate and punish companies that artificially inflate the price of energy. The need for this provision is clear. An investigation of 1,000 gas stations in New Jersey resulted in tickets for 350 violations of gasoline price gouging-related offenses. Among the citations issued were: 62 violations for the pump not accurately metering, or measuring, fuel, 46 violations for per-gallon prices being different on each side of the pump, 37 violations for fuel grades (octane rating labels) not posted, 26 violations for inaccurate octane ratings, 19 violations for inaccurate total sale price calculation and 14 violations for multiple price changes in a 24-hour period. This investigation is indicative of what is occurring all over the country. Price gouging has become an epidemic.

* Lastly, H.R. 6653 addresses the causes of our Nation's energy crisis by infusing a major investment in the research and development of renewable energy as well as providing financial assistance for the purchase of energy efficient appliances and vehicles. This investment will provide immediate relief to Americans by helping reduce their energy costs in the short-term by providing financial assistance for the purchase of efficient appliances and vehicles, and in the long-term by reducing our Nation's dependence on foreign oil by injecting much needed capital for the development of alternative energy.

* The Consumer Energy Relief Act pays for this investment by establishing a windfall profits tax on oil companies who have benefited from President Bush's policies that protect the profit margins of oil companies over the tight budgets of hard-working Americans. Just today we learned that ExxonMobil is projected to earn a record $52 billion this year and that the five largest oil companies in the United States are expected $168 million.

* Madam Speaker, American families and businesses are reeling from record prices--the result of 7 years of missed opportunities and an energy policy this White House has literally allowed the oil industry to write. Their policy is working for only one group: the oil companies which are earning record profits while Americans are paying record prices. The failure to diversify our energy sources with bold investments in renewable energy and more efficient technology, leaves us dangerously dependent on foreign oil, and hurts our economy and American families. The Consumer Energy Relief Act sets the United States on a different course, and I urge my colleagues to support it.

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