WASHINGTON (AFX) -- The House of Representatives, aiming to deal with public outrage over soaring gas prices, approved legislation Wednesday that would force energy companies that 'gouge' customers to face multi-million dollar fines and criminal penalties.
The bill easily cleared the House on a 389-34 vote. It now awaits action by the Senate. Separately, Democrats defeated a measure designed to streamline the permit process for new refineries.
If enacted, the anti-gouging legislation would first require the Federal Trade Commission to come up with a definition of the practice. There is no federal law that defines or prohibits gouging, although many states have laws that bar the practice.
'If the spikes in gasoline prices are due to anything other than market conditions, consumers have a right to count on us, the government, for protection from rip-offs,' said House Energy and Commerce Committee Chairman Joe Barton, R-Texas.
The bill would impose criminal penalties of up to $150 million on wholesalers who violate the law, and executives could face as much as two years in prison. Retail violators would face fines of as much as $2 million and up to two years in prison.
Democrats accused Republicans of running away from oil-company allies and stealing Democratic proposals amid fears voters could turn control of the House over to Democrats in the November mid-term elections.
'Imitation is the sincerest form of flattery,' said Rep. Bart Stupak, D-Mich., who introduced anti-gouging legislation last year. Democrats said Republicans had repeatedly blocked votes on the Stupak bill in the past.
In the end, 33 Republicans and one Democrat voted against the bill. Nine members missed the vote.
President Bush's advisers have said the administration believes present antitrust laws offer adequate federal protections against price manipulation and that a federal anti-gouging law isn't necessary.
But Democrats refused to back the refinery bill, arguing it would potentially weaken environmental regulations while doing nothing to ensure the building of new refineries.
'The real reason we have a refinery shortage is the companies that own refineries are profiting enormously' from refinery bottlenecks, said Rep. Rick Boucher, D-Va.
Republicans accused Democrats of blocking legislation that would ease a supply crunch.
'The Democrats must want America to become more and more dependent on foreign oil and that we should never build a new refinery. If they can't support common sense legislation designed to streamline the refinery sitting process: what can they support?' said House Speaker Dennis Hastert, R-Ill. This story was supplied by MarketWatch. For further information see www.marketwatch.com.