Bart Stupak

Mr. STUPAK

Mr. STUPAK. Mr. Speaker, every day now we see headlines in the newspaper much like this one here from the USA Today back on October 7, 2005, saying: ``Staying Warm To Cost up to 90 Percent More This Year,'' as energy costs have just skyrocketed in this country. Our constituents are bracing for a harsh winter, a record high in home energy costs; and they just continue to skyrocket, while oil companies are announcing record-breaking third quarter profits. Even though gas has come down a little bit, 2 weeks ago even in my district, the headline in the Marquette Mining Journal from October 19 said we are number one. We have the dubious title of having the highest gas prices in the upper peninsula of Michigan. And it is no wonder why we have record profits by the oil companies. Our constituents are angry and are frustrated, and they deserve answers from their elected officials. We must not stand by and let oil and gas companies engage in price gouging and profiteering when families are going to be forced to pay so much more to heat their homes, to heat their places of business, as we see in article after article anywhere from a 50 to 90 percent increase in home heating costs in the upcoming months. If we take a look at the documents recently provided by the current administration from the Energy Information Administration, the American family is going to have a 60 percent increase this year just to heat their homes this winter. We have almost a 50 percent increase, they figure, in natural gas. It will be a $350 increase this year. Home heating oil they figure is going to be a $378 increase over last year. Propane, $325 over last year. This is from, again, the Energy Information Administration. What we have seen are a lot of demands from our constituents to do something, but nothing is really being done. In this Congress here a few weeks ago, we did try to pass an energy bill to try to address price gouging, market manipulation, and bring some transparency to how a gallon of gas or a barrel of oil is priced when we go to use it. Unfortunately, that bill, which passed the House here, was such a poor bill that the other body took one look at it and they said they were not even going to take it up. So there was an alternative bill that never had a chance to have an up-or-down vote. It was called the FREE bill, free from energy manipulation by the oil companies. That was the Democratic bill. And what we did in our bill was this, and let me just show this chart here: Why are energy costs so high? This was from September, 2004, until September of 2005. To take the crude oil out of the ground or out of the gulf, wherever they get it, was an increase of 46 percent in the last 12 months, 46 percent. After the oil is taken out of the ground, it goes to the refiners. The refiners increased their costs and their prices 255 percent in the last 12 months. And then when it is distributed from the refinery to the gas stations, to the retailers, or to the oil companies to heat our homes this year, the cost is only 5 percent. So the bill we had before us approximately 2 weeks ago put forth by the majority party, instead of targeting the people who have increased their prices 255 percent over the last 12 months, they targeted the poor distributors and the gas station owners and the gas station operators. They targeted the people who made 5 percent in the last year. They targeted the wrong people. Plus the Republican bill did not take in propane, did not take in natural gas. Thirdly, the only time the Republican bill would kick in was when there is a natural disaster. In the Democratic bill, on the other hand, Mr. Speaker, we targeted all parts of the oil supply chain, from the crude producer, to the refiner, to the distributor. We said if they engage in excessive profits, like 255 percent over the last 12 months, we are going to go after those profits. That is price gouging, market manipulation, geographic price arrangements that they make from the refinery. And those excessive profits, and I think people would agree with me that 255 percent is excessive, would then be put into a fund to help the Low Income Heating Energy Assistance Program, LIHEAP as we call it. So we take the extra money and put it in there to help people heat their homes. We finally, for once, give the FTC, the Federal Trade Commission, the authority to stop price gouging. We allow the State attorneys general to enforce Federal law, and we maintain environmental standards. So this bill is back. We as a party, Democrats, are asking for a clean up-or-down vote on our bill. Let us put forth our bill, which is to stop the price gouging, market manipulation, the excessive regional pricing that goes on; and let us have a clean up-or-down vote on it. In the meantime, the Democratic Party is also asking, and, in fact, the letter is being circulated today, that we bring in the oil executives and ask them to explain to us how do they justify a 255 percent increase. Even a 46 percent increase is a tremendous amount of increase in the last 12 months when inflation is running at about 3 to 4 percent. So these are the questions we have, and we would like a free, clean up-or-down vote. As high gas prices persist, hard-working Americans are preparing for a cold winter during which they will likely face a doubling of home heating costs. These serious concerns underscore the need for this Congress to work together in a bipartisan manner. Let us investigate and crack down on the price gouging and other forms of market manipulation, and then maybe we will not see the headlines that we have seen in the last week about what the oil companies have made in the third quarter. The third quarter goes from, of course, July, August, September. In those 90 days, July, August, September, Exxon-Mobil's profit was $9.92 billion. That is the largest amount ever by a U.S. company, and 75 percent more in profits than they made last year. Shell Oil Company, they generated $9 billion in the third quarter, an increase of 68 percent from last year. These are excessive profits. Conoco Phillips generated $3.8 billion in the third quarter, an 89 percent increase from last year. Again, we do not mind anyone making a profit. Inflation is running 3, 4, 5 percent. But 89 percent over one year? British Petroleum generated $6.53 billion in the third quarter. These are profits. That is after paying for everything else. They cannot say it costs more. But these are profits, over and above. And Chevron generated $3.6 billion. The earnings of the world's five largest publicly traded oil companies this quarter have put them on track to earn $100 billion this year. Mr. Speaker, I hope this Congress can work together and pass a real energy program to help all Americans.

Mr. STUPAK

Mr. STUPAK. Mr. Speaker, I rise today to pay tribute to the more than 250,000 Americans in the Spina Bifida Community. An estimated 70,000 people in the United States currently live with Spina Bifida, the most common permanently disabling birth defect. Each October we recognize these Americans during National Spina Bifida Awareness Month, but we must work year round to advance research and policies to meet the needs of this community. As co-chair of the Congressional Spina Bifida Caucus, I've had the honor to work with the Spina Bifida Association of America, SBAA, to advance Spina Bifida awareness, research and public health efforts in Congress. For over 30 years, the SBAA has helped those living with and affected by this debilitating disease. Founded in 1973, the SBAA is the Nation's only organization solely dedicated to advocating on behalf of the Spina Bifida community. Through their almost 60 chapters in more than 125 communities, the SBAA brings expectant parents together with those who have a child with Spina Bifida. This interaction helps to answer questions and concerns, but most importantly it lends support and gives people essential information. Together the SBAA, the West Michigan SBA, the SBA of the Upper Peninsula Michigan, and the SW Michigan SB & Hydrocephalus Association work tirelessly to help the families of those living with Spina Bifida meet the challenges and enjoy the rewards of raising their children. I would like to thank the local chapters of SBAA in my State for their work in Michigan and other areas of the country. Michigan's chapters are partners in the SB Hurricane Emergency Life Support Program to help bring vitally needed supplies to hurricane victims in the Gulf Region and to put families affected by Spina Bifida in touch with others who can help them. Mr. Speaker, Spina Bifida is a birth defect that can happen to anyone. We do not know the exact cause of Spina Bifida; but research shows that if a woman takes 400 mcg of folic acid every day before she becomes pregnant, she reduces her risk of having a baby with Spina Bifida or another neural tube defect by as much as 70 percent. The exact cause of the rest of the cases is unknown, but it is believed that genetics and environment may play a role. Spina Bifida is a neural tube defect that happens in the first month of pregnancy when the spinal column doesn't close completely. There are 60 million women at risk of having a baby born with Spina Bifida. Every day, an average of eight babies are affected by Spina Bifida or a similar birth defect of the brain and spine. Each year, about 3,000 pregnancies are affected by these birth defects. Spina Bifida is not one condition; it is a multitude of problems that affect the mind, the body and the spirit. No two cases of Spina Bifida are ever the same. Today, approximately 90 percent of all babies diagnosed with Spina Bifida live into adulthood, approximately 80 percent have normal IQ's, and approximately 75 percent participate in sports and other recreational activities. With proper medical care attention and family care these people can live productive full lives with the help of braces and/or a wheelchair. There are breakthroughs every year that benefit the quality of life for those living with Spina Bifida. One of the keys to a better life for the 70,000 Americans who live with Spina Bifida is research. Our goals are to develop better treatment, better understanding of causes and new ways to prevent Spina Bifida. I am proud to be the co-chair of the Congressional Spina Bifida Caucus with Congressman Chris Smith and hope that all of my colleagues will join me to spread awareness about this disease. Together we can improve the quality of life of those living with Spina Bifida. I encourage my colleagues to join the caucus, which now has 52 members from both sides of the aisle. I again wish to thank the SBAA and its chapters for all of their hard work to prevent and reduce suffering for those 70,000 individuals living with Spina Bifida throughout this Nation. We all owe a great debt to the SBAA for what they have accomplished.

Mr. STUPAK

Mr. STUPAK. Mr. Speaker, we all have the opportunity to make choices in our lives. We have the choice to take the easy route, to blindly follow societal values no matter how false they may be. Or, we have the choice to take a stand and do what is right no matter how challenging the consequences may be. December 1st this year will mark the day 50 years ago when one brave, great American took a stand that, while resulting in many challenges, would spur a civil rights movement that shaped a growing country in a very positive way. In 1955, when Rosa Parks boarded that bus on her way home from work, she may not have been seeking to start a revolution; she may not have been looking to change the world; she may not have been hoping to lead a noble cause. Rosa Parks was presented with a choice: to accept the restrictions forced on her by false values or to take advantage of the opportunity to do the right thing. Rosa Parks, right then and there in Montgomery Alabama, decided she would not give up her seat that day because as a leader in the NAACP, she understood that by accepting the restrictions imposed on her under segregation she was only enabling it further. Although she was weary from a hard day at work as a seamstress, Rosa Parks found the strength to challenge that plague of conformity so that she and others might no longer have to endure another day under its agonizing credence. In making the choice to stand up to the monstrous ill of segregation, Rosa Parks joined heroes that have adorned legendary stories throughout the centuries when a common individual displays uncommon valor in the name of righteousness and against all odds. Rosa Parks set off a chain of events that, over time, would slay that dragon of segregation. Her bravery would inspire other common individuals moved by the desire to promote equal rights to ban together to form an army committed to a mission. Their mission would force a society that had accepted an immoral practice to stop and reevaluate its priorities and values. That day, Rosa Parks did start a revolution. That day, she inspired the Civil Rights movement that changed the world. That day she led a noble cause that she spent her entire life dedicated to seeing that we all have a seat of our choice at mankind's table. It all began with Rosa Parks making the choice to stand up for what she knew, in her heart, was right. America has reaffirmed that Rosa Parks was ``right'' in Montgomery, Alabama and ``right'' still today and in the future. On October 25th, 2005, our great American hero, Rosa Parks, died at the age of 92 in her adopted home of Detroit, Michigan. While our country grieves for the loss of one of its most treasured patriots, we can rest assured that the stand Rosa Parks took nearly 50 years ago and the contributions she made thereafter, continues to shape and change the values of this growing country. We are reminded that we must evaluate our priorities and values each day if we are to protect the equal rights endowed to us by our Creator. Most of all, as common individuals, we are reminded that each of us has the uncommon valor to stand up for what is right no matter the consequences because, just like Rosa Parks, each of us has a hero within.

Mr. STUPAK

Mr. STUPAK. Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Boucher), a member of the committee and my partner in drafting this amendment, the substitute amendment. (Mr. BOUCHER asked and was given permission to revise and extend his remarks.)

Mr. STUPAK. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from New York (Mr. Bishop), who helped us with the substitute and had invaluable input.

Mr. STUPAK. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Texas (Mr. Gene Green), a member of the committee.

Mr. STUPAK. It is just like the Strategic Petroleum Reserve; it is up to the Secretary to approve it. Would the Federal Government and Federal employees operate it? No. Much like we did in the energy bill for nuclear. Let us put it up and build it, but let someone else operate it and manage it.

Mr. STUPAK. Mr. Speaker, I yield 2 minutes to the gentlewoman from Pennsylvania (Ms. Schwartz), one of the authors of this substitute, and we appreciate her.

Mr. STUPAK. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I urge every member to support this amendment which provides meaningful relief for our Nation that is facing record gas prices. This amendment has support of the Minority Leader Pelosi as well as the ranking member of the Energy and Commerce Committee, Congressman Dingell. I would like to commend them for their support on this important initiative. I would also like to thank the gentleman from Virginia (Mr. Boucher) for his hard work on the refinery portions of this amendment. The results of our efforts have produced a quality product that will benefit all Americans. I would also like to recognize Congressmen Bishop, Barrow and Etheridge and Congresswomen Herseth and Schwartz for their valued input on this legislation. Even before the devastation caused by Hurricane Katrina, skyrocketing oil and gasoline prices were taxing American families and burdening our Nation's economy, with notable exceptions of the oil and gas industry which continued to rack up record profits. Following Katrina, gas prices in some States reached $6 per gallon, deepening suspicion of the oil industry profiteering. Our amendment would ensure that the President has the tools needed to adequately respond to any energy emergency and prohibits price gouging on all petroleum products with a priority on refineries and big oil. Whether it is gasoline or natural gas, the problem lies right here at the refinery level, with a 255 percent increase in the last 12 months alone. Here is a 1995 memo from the American Petroleum Industry, and I quote. ``A senior analyst, at the recent American petroleum energy convention, warned that if the U.S. petroleum industry does not refine or reduce its refining capacity, it will never see any substantial increase in refining margins.'' So since 1995, since this memo, they have closed 30 refineries. This conclusion is also backed up by the GAO, Government Accountability Office, which said in 2004 that by closing refineries, they were able to drive up to those exorbitant prices we are paying today at the pump. Currently, there are only 28 states that have laws on the books that define price gouging and have enforcement mechanisms to go after those ripping off consumers. At the Federal level, there is no oversight to protect consumers from this predatory pricing, gouging or market manipulation. We need to pass this amendment today. No American should have to pay too much for gas because the oil companies are rigging prices. Our amendment will give the President authority to take immediate action in the face of energy crisis by declaring a national energy emergency. It will provide the Federal Trade Commission with new authority to investigate and prosecute those that engage in predatory pricing, from oil companies on down to gas stations, with the emphasis on those who profit the most. This includes price gouging of gasoline and natural gas, home heating oil, propane. H.R. 3893 does nothing to address natural gas and propane gas prices, even though gas prices are expected to rise by more than 90 percent as shown in today's USA Today. Staying warm is to cost up to 90 percent more. That is natural gas. And this bill does not even address it. Our amendment also empowers the Federal Government to impose tough civil penalties of up to triple damage on all excess profits on companies that have cheated consumers. The base bill provides no additional penalties for those who engage in price gouging. Our amendment will also provide for relief to consumers paying skyrocketing energy and transportation costs and increase funding for the low-income home energy assistance program through fines from price- gouging companies. It would also put in place new consumer protections to prevent market manipulation and ensure greater transparency in the cost of a gallon of gas. The base bill provides no transparency. Why is it, we in America, no one can tell us what does it cost for a gallon of gas? What does it cost for a cubic foot of natural gas? Why do they not want us to know how they are manipulating the market, gouging the American consumer? In the wake of Hurricane Katrina, Americans are pulling together, donating to relief organizations and giving their time to help the people of the Gulf Coast recover. That is how American people react when they see their fellow citizens in need. Unfortunately, some people have looked at Hurricane Katrina not as a chance to give but as an opportunity to profit. Some have decided to take advantage of this terrible tragedy and line their own pockets by gouging the American people at the gas pump. As eight governors wrote to us in Congress urging passage of our legislation, they stated, and I quote, ``to price gouge consumers under normal circumstances is dishonest enough. But to take money off from the severe misfortune of others is downright immoral.'' Skyrocketing oil and gas prices are hurting the American consumer as well as our economy. Sadly, the majority bill does nothing to crack down on those who are manipulating the market and price gouging. The Stupak-Boucher amendment provides the kind of relief from high gas and energy prices that consumers deserve. Our amendment will protect all consumers from unfair energy and gas prices and punish those who think that a time of a national tragedy is the right time to rob the American people of their hard-earned money. I urge a ``yes'' vote on our amendment. Mr. Speaker, I reserve the balance of my time.

Mr. STUPAK. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman from Maryland (Mr. Hoyer), the distinguished Democratic floor leader.

Mr. STUPAK. Mr. Speaker, I yield the balance of my time to the gentlewoman from California (Ms. Pelosi), our Democratic leader, who has been so supportive in our efforts to make sure that Americans get a fair shake at the gas pump and when they heat their homes this winter and go to work each and every day. She has been there fighting for the American people.

Mr. STUPAK. Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. Barrow).

Mr. STUPAK. I will give the gentleman examples. I think excessive is more than reasonable. When it is more than reasonable pricing.

Mr. STUPAK. Mr. Speaker, I demand a recorded vote.

Mr. STUPAK. A great example is Georgia. Why did it go up $6 a gallon after Hurricane Katrina? Was that reasonable, when the rest of the Nation was about $3? That is excessive. That is unconscionable.

Mr. STUPAK. Then the President, much like the manager's bill, and much like excessive, and the gentleman's bill has the same language basically because you copied our bill, so you can go outside the area. The President has the authority to go outside the area, just like he does in the underlying area. And getting back to the FTC and what is excessive, again just like your bill, you used different words, but you allow the FTC to define it. We gave more than you gave. We actually gave concrete factors to consider.

Mr. STUPAK. Mr. Speaker, when the oil refineries raise their rates 255 percent in the last 12 months, that is unconscionably excessive.

Mr. STUPAK. In answer to the gentleman's last question, if you look at page 4, we have rulemaking in there, where the FTC shall promulgate the rules necessary and appropriate to enforce. Under the rulemaking process, you, myself, just about all of us have an opportunity to put in our two cents' worth on what we feel may be excessive, market manipulation, or price gouging. So, again, if you want to dwell on a word or two, I think all Americans know when they are being excessively gouged at the pump.

Mr. STUPAK. Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. Farr).

Mr. STUPAK. Well, Mr. Speaker, if the gentleman will continue to yield, I guess we are going to have to look in the bill, because in the bill we also put in there factors to be considered excessively too much. If you go to the bottom of page 2, bottom of page 3, we put it in there. Our bill says that in 90 days the FTC has to define it for us.

Mr. STUPAK. Go ahead. I will try to answer it.

Mr. STUPAK. Mr. Speaker, will the gentleman yield?

Mr. STUPAK. Mr. Speaker, I offer an amendment in the nature of a substitute. The Clerk will designate the amendment in the nature of a substitute. The text of the amendment in the nature of a substitute is as follows: Amendment in the nature of a substitute offered by Mr. Stupak: Strike all after the enacting clause and insert the following:

Mr. STUPAK. They would operate around the clock. Mr. Chairman, if you look on page 18 on how it would be implemented, it is starting on line 9, we have the implementation plan, and it must be established within 2 years and how they are going to do it. But we would operate it year- round. The refined product would go to, without an energy declaration by the President, refined product would go to the military to meet their military needs. At times of emergency, then we would shift to give relief at home at the pump for the American people.

Mr. STUPAK

Mr. STUPAK. Mr. Speaker, the gentleman from Pennsylvania makes a good point, but if you look at today's Washington Post, ``Natural Gas Danger Signs,'' they talk about a 90 percent increase in natural gas. Higher costs threaten our economic growth in U.S. manufacturing. Here is USA Today: ``Staying Warm Costs Up 90 Percent More.'' There is no way you are going to vote for the Barton bill, the main bill, if you believe the price of natural gas is too high. If you believe everything the gentleman from Pennsylvania said, you would vote against the Barton bill, because it does not include natural gas. Only the Democratic substitute, the Stupak-Boucher bill does.