text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Wholesale Motor Fuel Fairness and 
  Competition Restoration Act''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds that--
              (1) both wholesale and retail motor fuel prices are the 
          result of a number of complex factors, including those related 
          to supply, refining, consumer demand, and oil company cost, 
          pricing, and marketing practices;
              (2) certain cost, pricing, and marketing practices employed 
          by the oil companies are unfair and anticompetitive, and 
          contribute to the unjustified price of retail motor fuel 
          charged the American consumer;
              (3) among the unfair and anticompetitive oil company 
          practices are price zoning, redlining, discriminatory wholesale 
          motor fuel pricing, and a complex system of cost allocation 
          that hides the factors on which wholesale costs are based;
              (4) the oil companies' practice known as price zoning is 
          one by which prices for motor fuel are set solely because of 
          the retail station's geographic location unrelated to cost-of-
          business factors;
              (5) price zoning allows an oil company to artificially 
          increase or depress retail motor fuel prices in order to secure 
          an unfair market advantage against competitors;
              (6) the oil companies engage in a practice known as 
          redlining, whereby a refiner refuses to sell motor fuel to 
          distributors or particular geographic markets;
              (7) redlining allows an oil company to force concessions 
          from a distributor and affords the company the opportunity to 
          exert undue influence in a particular area or region;
              (8) the oil companies engage in a practice of 
          discriminatory wholesale pricing of motor fuel based on the 
          relationship of the purchaser to the oil company and the degree 
          of competition they provide;
              (9) discriminatory pricing allows oil companies to charge 
          different wholesale prices to company owned and operated retail 
          stations, franchisees, and independent retailers though all may 
          be situated in the same community and face the same competitive 
          and operating factors;
              (10) the oil companies engage in a complex system of cost 
          allocations by which they employ rebates, incentives, credits, 
          and market enhancement allowances that hide the factors on 
          which wholesale prices are based or published;
              (11) the complex system of cost allocation allows oil 
          companies to post a ``wholesale price'' that is far different 
          from the actual wholesale price that would be revealed if the 
          cost factors were publicly identified and appropriately 
          allocated; and
              (12) it is appropriate for the Federal Government to 
          prohibit these unfair oil company cost, pricing, and marketing 
          practices, to restore fair and competitive practices to the 
          wholesale sale of motor fuel, and to allow American consumers 
          to assess for themselves the factors that contribute to the 
          price changes they pay at the retail pump.
  
  SEC. 3. PRICE DISCRIMINATION PROHIBITION.
  
      (a) Prohibition.--
              (1) In general.--It shall be a violation of this Act for an 
          owner or operator of a terminal facility to sell motor fuel 
          from the terminal facility to a distributor or retailer at a 
          price in excess of the price it charges any other distributor 
          or retailer, including a distributor or retailer which it owns 
          or with which it is affiliated.
              (2) Price determination.--For purposes of this subsection, 
          the price an owner or operator of a terminal facility charges a 
          distributor or retailer which it owns or with which it is 
          affiliated shall be the price determined pursuant to the 
          regulations issued under section 4(a).
              (3) Exception.--A sale shall not be in violation of this 
          subsection if it is made pursuant to the terms of a franchise 
          or sales contract entered into before October 17, 2000.
      (b) Civil Penalty.--The Federal Trade Commission may assess a civil 
  penalty, not to exceed $1,000,000, for each violation described in 
  subsection (a).
      (c) Criminal Penalty.--Whoever knowingly violates subsection (a) 
  shall be fined under title 18, United States Code, or imprisoned not 
  more than 5 years.
      (d) Effective Date.--This section shall take effect 6 months after 
  the date of the enactment of this Act.
  
  SEC. 4. FULL DISCLOSURE.
  
      (a) Requirement.--The Federal Trade Commission, in consultation 
  with the Secretary of Energy, shall issue regulations requiring full 
  disclosure by refiners and distributors of their wholesale motor fuel 
  pricing policies, including rebates, incentives, and market enhancement 
  allowances. Such regulations shall establish procedures for determining 
  the price an owner or operator of a terminal facility charges a 
  distributor or retailer which it owns or with which it is affiliated.
      (b) Effective Date.--The regulations issued under subsection (a) 
  shall take effect 6 months after the date of the enactment of this Act.
      (c) Public Dissemination.--The Federal Trade Commission shall 
  ensure that all information acquired pursuant to the regulations issued 
  under subsection (a) are made available to the public, except trade 
  secrets and commercial or financial information protected from 
  disclosure under subsection (b)(4) of section 552 of title 5, United 
  States Code (commonly referred to as the Freedom of Information Act). 
  Such information may be disseminated through the Energy Information 
  Administration.
  
  SEC. 5. OWNERSHIP STUDY AND REPORT.
  
      Not later than 18 months after the date of the enactment of this 
  Act, the Federal Trade Commission, in consultation with the Secretary 
  of Energy, shall transmit to the Congress a report containing the 
  results of a study of whether ownership or operation by a refiner of a 
  facility for the retail sale of motor fuel has anticompetitive effects 
  on the price of motor fuel. Such report shall include any 
  recommendations for legislative or administrative actions the Federal 
  Trade Commission, in consultation with the Secretary of Energy, 
  considers appropriate.
  
  SEC. 6. DEFINITIONS.
  
      For purposes of this Act, any term defined in section 101 of the 
  Petroleum Marketing Practices Act (15 U.S.C. 2801) shall have the 
  meaning given the term in that Act.
target: Sets forth civil and criminal penalties for violations of such prohibition.
  Directs the Federal Trade Commission to: (1) promulgate regulations requiring full disclosure by refiners and distributors of their wholesale motor fuel pricing policies, including rebates, incentives, and market enhancement allowances; (2) ensure that all such information is made available to the public; and (3) report to Congress the results of a study whether ownership or operation by a refiner of a facility for the retail sale of motor fuel has anticompetitive effects on the price of motor fuel.
feat_title: Wholesale Motor Fuel Fairness and Competition Restoration Act