April 19, 2006

Honorable Dennis J. Hastert                                        

Speaker, U.S. House of Representatives                                  

H-232 Capitol Building                                                

Washington, D.C. 20515                                             

Dear Speaker Hastert:

Crude oil prices have exceeded the previous record set after Hurricane Katrina hit the Gulf Coast, reaching over $70 a barrel on the New York Mercantile Exchange.  This summer, Americans are expected to pay significantly more at the pumps than last summer.  As prices climb, the potential for price gouging increases.

On Tuesday, President Bush spoke about the importance of prosecuting price gouging, stating:  “I'm concerned what it means to the working families and small businesses, and I'm also mindful that the government has the responsibility to make sure that we watch very carefully, and to investigate possible price gouging.  And we'll do just that.”

I agree with the President that the government has the responsibility to investigate price gouging.  The problem is the federal government has never accurately defined what price gouging is and has never given the Federal Trade Commission (FTC) and State Attorneys General the tools necessary to properly prosecute price gouging. Congress must provide the Administration with the appropriate tools to investigate and crack down on price gouging and other forms of market manipulation. 

Earlier attempts to address price gouging, such as the so-called ‘Gasoline for America’s Security Act’ (H.R. 3893), contain weak provisions that do not effectively address the issue.  These proposals have failed to garner broad bipartisan or bicameral support – demonstrated by the extremely narrow margin of passage in the House and the rejection of similar legislation by the Senate Environment and Public Works Committee. 

The country simply cannot afford to endure another year of high gas prices.  To that end, I am asking you to address this issue by bringing to the House floor the Federal Response to Energy Emergencies Act (H.R. 3936) as soon as possible. 

This legislation would provide immediate relief to consumers by giving the FTC the explicit authority to investigate and punish those who artificially inflate the price of energy.  For the first time ever, the FTC would develop a price gouging definition, taking into consideration the guidelines established in HR 3936.  The FTC would also be empowered to exercise this authority at each stage of the energy production and distribution chain, and would apply this authority to oil, natural gas, home heating oil, crude oil and propane. 

In a strong show of support for this legislation, over 100 of my fellow members have already signed Discharge Petition No. 109-7, requesting that HR 3936 be given floor consideration.  More Members of Congress are adding their name to this cause each week.

Our constituents are looking to Congress for relief.  It is our duty to approve legislation that would provide that relief, to protect Americans from the increased financial hardship that price gouging creates.  Please allow HR 3936, the Federal Response to Energy Emergencies Act, to be considered on the House floor.

I look forward to working with you to address this issue of growing national importance. 

Sincerely,

BART STUPAK

Member of Congress