Lots of good stuff in the energy bill that’s currently making its way through the Senate. It goes to show you that it really does matter which party controls Congress for these sorts of things. Instead of a bill that’s larded up with giveaways for oil companies, we’re going to be getting pretty significant increases in CAFE standards (which, as Atrios noted recently, is more important than a gas tax in increasing fuel efficiency), research into carbon sequestration, and all sorts of other efficiency goodies.
However, the bill seems to be stalled because of this silly provision:
Price Gouging: The bill makes oil industry “price gouging” a federal crime during times when the president has declared a temporary “national energy emergency” — much like the emergencies that states declared after Hurricane Katrina. The Federal Trade Commission would also be given greater authority to investigate possible manipulation of the oil market – including refinery shutdowns. Oil companies and the Bush administration strongly oppose this provision, which has prompted a veto threat from President Bush.
“I did something about price gouging” is something every politician wants to be able to say, so that’s why this is here. In a rational world, this would be the first thing that gets traded away during negotiations, because it’s silly grandstanding. In the real world, unfortunately, the auto lobby will succeed in watering down CAFE standards and this silly piece of political theater will probably stay in the bill.
Why do I think price gouging laws are silly? Because, for one thing, the price of gas is the most publicly obvious product price we have. The fear of a huge sign on top of a gas station that says “Shell Oil - $8.09/gallon” in 1,000-point type appearing it on the evening news is enough for a company to do what it can to avoid gouging in the long term.
Second, and more importantly, the way these laws are often written (or enforced), what ends up happening is the oil company itself doesn’t get investigated, but rather the local station owner, who has little control over the prices. In fact, station owners usually lose money when the price of gas spikes.
Now Playing: Episode 366
Obama staffs up, Detroit comes to DC and finally, Iraq and the US come to a security agreement.
Links Mentioned: Iraq SOFA … pros and cons of a bailout.
Third — if oil companies are engaging in unlawful price manipulation, then why do gas prices ever fall? (which they do from time to time). I.e., the idea that there’s some Vast Rightwing Conspiracy is logically untenable.
I do some work with the Alliance of Auto Manufacturers, and we agree that increases in CAFE standards are an integral aspect of this new energy bill. That’s why we are supporting the Pryor-Bond-Levin-Voinivich amendment, which would mandate that cars achieve at least a 36 mpg standard by 2022 and that light trucks achieve at least a 30 mpg standard by 2025. In addition, this amendment includes provisions requiring automakers to invest in clean technology, specifically mandating that a percentage of automakers’ fleets be advanced technology vehicles by 2017. We think this amendment is a step in the right direction and would encourage you to pass along your support to your senators and representatives. For more information on the amendment, and to find Congressional contact information, visit us at http://www/drivecongress.com.
Thanks for Commenting, DriveCongress. The Washington Post editorial board has this to say about the Pryor-Bond-Levin-Voinovich amendment: