House Democrats endorsed Congressman Bart Stupak's (D-Menominee) Federal Response to Energy Emergencies Act, called the FREE Act, which will empower the federal government to end price gouging by oil companies and provide relief to farmers and small businesses paying high energy and gas costs.

"Even before Hurricane Katrina, our constituents have been forced to pay skyrocketing gas prices at the pump that have squeezed the pocketbooks of American families," Congressman Stupak said. "The fact remains, we rely on oil to fuel our cars, homes, and economy, so our constituents are forced to pay the price. At the same time our constituents are faced with the choice of gassing up their cars, paying for their prescription drugs, or providing for their families, oil companies are reaping record profits."

The bill, said Congressman Stupak, will give the President of the United States the authority to take immediate action in the face of an energy crisis by declaring a national energy emergency and making it illegal for the sale of crude oil, gasoline, or petroleum to rise at inexplicable rates.

The bill will also give the Federal Trade Commission (FTC) and the Department of Justice (DOJ) authority to prosecute oil companies on down to gas stations that engage in price gouging involving gasoline, home heating oil, or natural gas, with an emphasis on those who profit most.

"In the last three weeks there have been more than 7,000 complaints of price gouging filed with the Department of Energy (DOE), and in some parts of the country, gasoline prices exceeded $6 per gallon," Mr. Stupak said. "Our constituents are angry and frustrated with these high gas prices - and they deserve answers and action from their elected officials!"

There is no federal oversight to protect consumers from this "predatory pricing,” he said. According to Mr. Stupak, the bill will direct the FTC to prohibit practices that result in market manipulation and expand the FTC's authority to include those offenses which involve geographic price-setting or territorial restrictions imposed by refiners. The federal government would be allowed to impose tough civil and criminal penalties for those who manipulate or gouge prices.

Some fines collected from such offenses would go toward the Low-Income Home Energy Assistance Program, which aids consumers in paying their heating bills.

In addition to federal empowerments, Mr. Stupak said the new legislation will authorize State Attorneys General to bring civil actions against retailers in the appropriate U.S. district court to enforce certain provisions in this act. The legislation has been endorsed by the entire Democratic House Caucus and similar legislation was simultaneously introduced in the Senate by Senator Maria Cantwell (D-Washington).