Bill Overview
Title: Transportation Fuel Market Transparency Act
Description: This bill expands prohibitions against manipulating fuel markets, establishes a body within the Federal Trade Commission (FTC) to monitor fuel markets to ensure competitiveness, and addresses related issues. Prohibitions against the manipulation of wholesale fuel markets or reporting false (or misleading) information shall apply to actions related to crude oil and transportation fuel, defined in this bill to include gasoline, distillate fuels, jet fuel, aviation gasoline, and biofuel. Currently, such prohibitions only apply to crude oil, gasoline, and petroleum distillates. The bill further expands the prohibition on reporting false information to include such information that (1) concerns the supply of, operational actions related to, or output related to wholesale fuel markets; (2) is not required to be reported by law; or (3) affects the analyses or data compiled by a private sector price-reporting agency. The bill also increases the maximum civil penalty for violating these prohibitions from $1 million to $2 million for each day of the violation. Furthermore, the bill establishes within the FTC the Transportation Fuel Monitoring and Enforcement Unit. The unit must continuously and comprehensively collect and analyze fuel market data to support competitive market practices, identify market manipulation and other unfair methods of competition, and facilitate enforcement of competition-related statutes. The Energy Information Administration within the Department of Energy must collect data to facilitate transparent and competitive transportation fuel markets, determine adherence to sanctions, and protect consumers.
Sponsors: Sen. Cantwell, Maria [D-WA]
Target Audience
Population: Consumers of transportation fuel worldwide
Estimated Size: 333000000
- The bill affects individuals and entities involved in the production, distribution, and consumption of transportation fuels globally, including crude oil, gasoline, distillate fuels, jet fuel, aviation gasoline, and biofuel.
- Global consumers of transportation fuel are likely to be impacted by potential changes in market competitiveness and fuel prices resultant from this bill.
- The bill targets market transparency which could influence fuel prices and availability, thus impacting global economic activities and well-being.
Reasoning
- Given the budget limitations, the policy might prioritize sectors with the highest volumes of fuel consumption and significant price fluctuations, such as aviation, trucking, and urban commuting.
- The average consumer may be indirectly impacted by changes in fuel prices due to increased market regulation and potential penalty dissuasion for market manipulation.
- The policy's establishment of a monitoring unit within the FTC is likely to mitigate volatility in fuel pricing, thus potentially affecting well-being by offering more stable and predictable transportation costs.
- The policy primarily aims at increasing market transparency and preventing manipulative practices, which could lead to more competitive pricing and ultimately benefit consumers in the long run.
Simulated Interviews
Oil Industry Analyst (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy could introduce more compliance costs for the industry, potentially increasing operational costs.
- However, increased transparency could level the playing field, curbing unethical practices that distort the market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Airline Pilot (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Stable fuel prices are crucial for airline ticket pricing.
- The policy could help maintain competitive and fair jet fuel costs, lessening sudden surcharges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Rideshare Driver (Los Angeles, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Greater transparency could mean more stable and predictable prices, which helps me plan my budget better.
- Concerned about short-term hikes due to increased regulation costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Farmer (Des Moines, IA)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Regulations could stabilize fuel prices, but there might be some short-term adjustments.
- Fuel costs are a substantial part of my operating expenses, so consistency would be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired, Former Truck Driver (Orlando, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I think the policy could bring about a fairer playing field.
- New drivers are often at the whim of volatile fuel prices; stability helps their financial planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Environmental Advocate (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Transparency in fuel markets is crucial, but we should shift towards more renewables.
- Hope this can act as a stepping stone for a broader shift in energy policies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Student (Chicago, IL)
Age: 23 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- Any changes in fuel costs could trickle down to public transport prices.
- Stability in fuel markets might help my cost of living stay manageable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Manufacturing Plant Manager (Detroit, MI)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Predictable fuel costs can help in better financial planning and potentially lower operational costs.
- Market manipulations have hurt us in the past; transparency is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 6 |
Biofuel Researcher (Salt Lake City, UT)
Age: 36 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- This could level the playing field for biofuels if markets are more accurately monitored.
- Promotes a fair competition environment which is crucial for emerging fuel technologies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired Farmer (Rural Kansas)
Age: 68 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I don't use much fuel anymore, but every cent counts.
- Transparent prices can only help with planning my limited travels.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $900000000 (Low: $750000000, High: $1100000000)
Year 2: $950000000 (Low: $800000000, High: $1150000000)
Year 3: $1000000000 (Low: $850000000, High: $1200000000)
Year 5: $1100000000 (Low: $950000000, High: $1300000000)
Year 10: $1250000000 (Low: $1100000000, High: $1400000000)
Year 100: $2000000000 (Low: $1600000000, High: $2400000000)
Key Considerations
- The initial cost outlays are significant due to the need for setting up new monitoring and enforcement systems within the FTC and the Department of Energy.
- Ensuring market transparency can prevent significant economic volatility in fuel prices.
- Existing penalties for anti-competitive behavior may require adjustment to sustain market compliance.