Washington, D.C. – Less than two weeks before the start of this year’s hurricane season, the U.S. House of Representatives today crafted legislation that would impose price controls on energy suppliers and consumers in Southwest Louisiana the next time disaster strikes the Gulf Coast.  The so-called “Federal Price Gouging Prevention Act” (H.R. 1252) was approved by the House against the objections of U.S. Representative Charles W. Boustany (R-La.) and other members from the Gulf Coast.

“No matter how you try to dress it up, this bill still imposes the same price controls from the 1970’s that only contributed to our nation’s energy woes,” Boustany said.  “Southwest Louisiana residents remember the mass rationing, long lines at the pump, and consumer outrage that made matters worse the last time Washington got involved in the energy business.”

Under the terms of the “Federal Price Gouging Prevention Act,” the act of price gouging is defined as raising the price of gasoline to a level considered “unconscionably excessive,” without defining what that actually means.  The language included is subject to widely varying interpretations, providing no guidance to suppliers but threatening jail sentences of up to 10 years for violation of this vague law.

“Congress needs to address high energy prices, but punishing employers along the Gulf Coast is not a solution,” Boustany added.  “Our focus should be on coming up with a balanced approach that expands our refining capacity and uses innovative technology to explore our domestic energy supply.”

Federal Trade Commission (FTC) investigations – as recent as the Spring of 2006 when the nation suffered supply shocks after Hurricanes Rita and Katrina – found no evidence of gouging, just free-market supply and demand principles at work.

Click here for video of Boustany’s remarks during debate of this legislation.