May 3, 2006 3:40 PM, EDT

House Passes Bill Penalizing Fuel Price Gouging

Rejects Move to More Easily Permit Refineries

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he House Wednesday approved criminal penalties and fines of up to $150 million on energy companies caught price gouging fuel, news services reported.

he legislation, which received broad bipartisan support, passed 389-34, and will next be considered by the Senate. It covers gasoline, diesel, biofuels and crude oil, Bloomberg reported.

But a proposal aimed at making it easier to expand or build oil refineries fell short 237-188; the measure needed two-thirds approval to pass under special House procedures.

Democrats said the speed-up in permits might reduce environmental protection and usurp local say over refinery construction, AP reported.

President Bush last week directed the Justice Department to investigate any potential price gouging at gasoline pumps. (Click here for previous coverage.)

Also Thursday, Senate Majority Leader Bill Frist (R-Tenn.) dropped a plan to give consumers $100 rebates due to high gas prices, Bloomberg reported.