05.03.06

Cantwell Statement on Possible House Vote to Ban Gas Price-Gouging

Cantwell legislation pending in Senate would enact national ban, backup consumer protections with tough criminal penalties

WASHINGTON, DC – U.S. Senator Maria Cantwell (D-WA) issued the following statement today on news that the House is preparing to vote on an anti gas price-gouging bill that would impose criminal and civil penalties on any company caught price-gouging. The House legislation calls for criminal penalties of up to $150 million for refiners and other wholesalers and $2 million for retailers. The House bill would not ban other forms of market manipulation potentially contributing to today’s high gas prices, and would not take effect for up to six months—until the Federal Trade Commission issues a rule to implement its portion of the legislation.

Cantwell and Congressman Bart Stupak (D-MI) introduced more comprehensive legislation in September of 2005 (S.1735/H.R.3936).

“The Senate voted on a more comprehensive measure in November of last year,” said Cantwell, a member of the Senate Energy Committee. “It gathered 57 votes—showing that even back in the fall, there was strong support from both sides of the aisle for delivering real tools to attorneys general and the Federal Trade Commission to do their job and protect consumers. I hope the Senate will take up a stronger and more immediate version than the House may today—and do it before the summer driving season begins in earnest on Memorial Day. Consumers need the confidence that federal and state authorities have all the power they need to hold the oil industry accountable this summer.”

Cantwell’s legislation would outlaw gas price-gouging, impose tough fines and criminal penalties on violators, and give federal and state authorities new powers to protect Americans, ensure greater market transparency, and go after companies that manipulate oil and gas markets.

Cantwell has also sponsored legislation to set a national goal of reducing domestic oil consumption equivalent to 40 percent of America’s projected imports in the next 20 years, and has authored a measure that would require more accurate consumer information on the fuel efficiency of new vehicles. Cantwell has been a consistent advocate of measures to promote greater use of domestically produced biofuels, increase the availability of flex-fuel vehicles on American roads, and improve national fuel economy standards.

###