Advertisement

Congress pays a visit to gas pump

Share
Times Staff Writer

Congress wants you to know it feels your pain at the pump.

As lawmakers prepared to face voters back home during their weeklong Memorial Day recess, the House approved a bill Wednesday that would make gasoline price gouging a federal offense.

In the Senate, Democratic leaders announced plans to bring to the floor their first energy bill since taking control of Congress.

Lawmakers from both parties are hearing from constituents about soaring gasoline prices, which on Wednesday hit a record national average of $3.221 for a gallon of self-serve regular. So they are working furiously to respond -- even if there is little they can do to provide immediate relief.

Advertisement

“I was at a funeral Saturday and when the monsignor greeted me he said, ‘My God, Bart, you have to do something about these gas prices,’ ” said Rep. Bart Stupak (D-Mich.), chief sponsor of the gouging bill.

Rep. Sheila Jackson-Lee (D-Texas) told her colleagues, “I can’t go home, and I imagine none of you can, without saying we tried to do something.”

As evidence of the political anxiety, the gouging measure was approved 284 to 141, with 56 Republicans voting for it, despite a veto threat.

The White House contends that the bill’s definition of gouging is vague, which would make the law difficult to enforce and create confusion for sellers. The administration also questioned the need for the legislation, noting that many states have price-gouging laws.

“This bill could result in gasoline price controls and in some cases bring back long gas lines reminiscent of the 1970s,” the administration said in a statement.

House approval of the gouging measure came one day after the chamber defied another veto threat to approve a bill that would subject the 12 members of the Organization of the Petroleum Exporting Countries to price-fixing lawsuits.

Advertisement

On Wednesday, some House Democrats visited an Exxon station on Capitol Hill that has become a backdrop whenever lawmakers want to call attention to their efforts on gas prices. And in a memo to fellow Democrats, Senate Majority Leader Harry Reid of Nevada urged them to talk about the energy legislation during the recess.

“Conduct a press conference at a gas station to highlight how our energy legislation will protect the American consumer,” he suggested.

The gouging measure would give federal regulators the authority to investigate and prosecute anyone selling gas or any other petroleum distillate at a price that is “unconscionably excessive” and “taking unfair advantage” during presidentially declared emergencies.

During House debate, Rep. Joe L. Barton (R-Texas) said there was no need for a federal law, arguing that if “pandemic price gouging” were going on, states with gouging laws would be flooding the courts with complaints. Instead, he said, the prices reflect that demand for oil is up. The markets were doing what markets do, he said, noting, “If you don’t have more of it, prices are going to go up.”

But Rep. Edward J. Markey (D-Mass.) said: “The Christians had a better chance against the lions than the consumer has against the oil company at the pumps in the United States today. And all we’re saying is, let’s give the federal government a sword to get into the battle, to get into the arena, on behalf of the consumers in America.”

Although gouging legislation passed the House last year, it died in the Senate. This year, a similar bill has cleared a Senate committee.

Advertisement

Under the measure, the Federal Trade Commission, which now monitors gas prices for violations of antitrust laws, would gain the authority to pursue gouging complaints. Violations of the law would carry penalties of up to 10 years in prison and a fine up to $2 million for an individual and up to a $150 million for a corporation.

Some experts have expressed skepticism about whether the measure would have any effect.

“There may be some very regional, very specific instances of rogue behavior,” Paul Sankey, energy analyst for Deutsche Bank, said in congressional testimony last week. But he said that no company was “stupid enough to try and make money by gouging the U.S. consumer. The simple fact is they don’t need to right now. Frankly, they’re making so much money just by the nature of the market.”

As the House acted Wednesday, Senate Democratic leaders announced they would take up a package of energy measures as the next order of business after the immigration bill.

The package, aimed at reducing global warming pollution and U.S. dependence on foreign oil, includes a measure that would raise vehicle fuel efficiency.

*

richard.simon@latimes.com

Advertisement