1. Short title This Act may be cited as the Drought-Related Overpricing Prevention Act or the DROP Act . 2. Prohibition on water rights price gouging (a) Prohibition Not later than 1 year after the date of the enactment of this Act, the Commission shall promulgate, under section 553 of title 5, United States Code, regulations to prohibit an entity from selling, leasing, or offering for sale or lease, at an excessive price, water rights relating to an area subject to a covered drought. (b) Exemptions (1) In general In promulgating regulations under subsection (a), the Commission shall exempt from such regulations the following: (A) An entity with less than $100,000,000 in gross revenues in the United States (including the revenues of any parent entity of such entity) during the 1-year period preceding the date of the relevant sale, lease, or offer. (B) A State government. (C) A local government. (D) A Tribal government. (2) Adjustments for inflation On an annual basis, the Commission shall adjust the amount specified in paragraph (1)(A) to reflect changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics. (c) Excessive price determinations (1) Standards required In promulgating regulations under subsection (a), the Commission shall establish standards for determining if a price is excessive. (2) Determinations of excessive price The standards established under paragraph (1) shall provide for a price to be determined excessive if the Commission finds that the relevant entity is selling, leasing, or offering for sale or lease water rights— (A) using a covered drought as a pretext to increase prices; and (B) at an inappropriately excessive price compared to the average price at which similar water rights were sold, leased, or offered for sale or lease (as the case may be), during the 120-day period preceding such covered drought, by— (i) such relevant entity