HR 1748 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 1748CommentsClose CommentsPermalink

To provide consumers relief from high gas prices, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

May 5, 2011CommentsClose CommentsPermalink

Mr. BISHOP of New York (for himself, Mr. MARKEY, Ms. CHU, and Mr. LARSON of Connecticut) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means and Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide consumers relief from high gas prices, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Taxpayer and Gas Price Relief Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Table of contents.CommentsClose CommentsPermalink

TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL COMPANIES

Sec. 101. Deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities of major integrated oil companies.CommentsClose CommentsPermalink





Sec. 102. Major integrated oil companies ineligible for last-in, first-out method of inventory.CommentsClose CommentsPermalink





Sec. 103. Limitation on deduction for intangible drilling and development costs of major integrated oil companies in the case of oil and gas wells.CommentsClose CommentsPermalink

TITLE II--DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES

Sec. 201. Short title.CommentsClose CommentsPermalink





Sec. 202. Eligibility for new leases and the transfer of leases.CommentsClose CommentsPermalink





Sec. 203. Price thresholds for royalty suspension provisions.CommentsClose CommentsPermalink

TITLE III--PROTECTION FROM PRICE GOUGING

Sec. 301. Short title.CommentsClose CommentsPermalink





Sec. 302. Unconscionable pricing of gasoline and other petroleum distillates during emergencies.CommentsClose CommentsPermalink





Sec. 303. Enforcement by the Federal Trade Commission.CommentsClose CommentsPermalink





Sec. 304. Criminal penalties.CommentsClose CommentsPermalink





Sec. 305. Enforcement at retail level by State attorneys general.CommentsClose CommentsPermalink





Sec. 306. Effect on other laws.CommentsClose CommentsPermalink

TITLE IV--STRATEGIC PETROLEUM RESERVE

Sec. 401. Short title.CommentsClose CommentsPermalink





Sec. 402. Definition.CommentsClose CommentsPermalink





Sec. 403. Petroleum product reserve.CommentsClose CommentsPermalink





Sec. 404. Sale of oil from the Strategic Petroleum Reserve and acquisition of refined petroleum product.CommentsClose CommentsPermalink





Sec. 405. Report to Congress.CommentsClose CommentsPermalink





Sec. 406. Strategic Petroleum Reserve drawdown and exchange in public interest.CommentsClose CommentsPermalink

TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL COMPANIESCommentsClose CommentsPermalink

SEC. 101. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES NOT ALLOWED WITH RESPECT TO OIL AND GAS ACTIVITIES OF MAJOR INTEGRATED OIL COMPANIES.

(a) In General- Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking ‘and’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ‘, and’, and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink





‘(iv) in the case of a major integrated oil company (as defined in section 167(h)(5)), the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 102. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE FOR LAST-IN, FIRST-OUT METHOD OF INVENTORY.

(a) In General- Section 471 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:CommentsClose CommentsPermalink





‘(c) Major Integrated Oil Companies Ineligible for Last-In, First-Out Method- In the case of a major integrated oil company (as defined in section 167(h)(5)(B))--CommentsClose CommentsPermalink





‘(1) the last-in, first-out method of determining inventories shall in no event be treated as clearly reflecting income, andCommentsClose CommentsPermalink





‘(2) sections 472 and 473 shall not apply.’.CommentsClose CommentsPermalink





(b) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) CHANGE IN METHOD OF ACCOUNTING- In the case of any taxpayer required by the amendments made by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this Act--CommentsClose CommentsPermalink





(A) such change shall be treated as initiated by the taxpayer,CommentsClose CommentsPermalink





(B) such change shall be treated as made with the consent of the Secretary of the Treasury, andCommentsClose CommentsPermalink





(C) if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 is positive, such amount shall be taken into account over a period of 8 years beginning with such first taxable year.CommentsClose CommentsPermalink

SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS OF MAJOR INTEGRATED OIL COMPANIES IN THE CASE OF OIL AND GAS WELLS.

(a) In General- Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: ‘This subsection shall not apply to intangible drilling and development costs paid or incurred by any major integrated oil company (as defined in section 167(h)(5)) in the case of oil and gas wells.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Subsection (c) of section 263 of such Code is amended by inserting ‘(determined without regard to the last sentence of this subsection)’ after ‘in the same manner as such expenses are deductible in the case of oil and gas wells’.CommentsClose CommentsPermalink





(c) Effective Date- The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

TITLE II--DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIESCommentsClose CommentsPermalink

SEC. 201. SHORT TITLE.

This title may be cited as the ‘Deficit Reduction Through Fair Oil Royalties Act’.CommentsClose CommentsPermalink

SEC. 202. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.

(a) Issuance of New Leases-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall not issue any new lease that authorizes the production of oil or natural gas under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) to a person described in paragraph (2) unless the person has renegotiated each covered lease with respect to which the person is a lessee, to modify the payment responsibilities of the person to require the payment of royalties if the price of oil and natural gas is greater than or equal to the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).CommentsClose CommentsPermalink





(2) PERSONS DESCRIBED- A person referred to in paragraph (1) is a person that--CommentsClose CommentsPermalink





(A) is a lessee that--CommentsClose CommentsPermalink





(i) holds a covered lease on the date on which the Secretary considers the issuance of the new lease; orCommentsClose CommentsPermalink





(ii) was issued a covered lease before the date of enactment of this Act, but transferred the covered lease to another person or entity (including a subsidiary or affiliate of the lessee) after the date of enactment of this Act; orCommentsClose CommentsPermalink





(B) any other person that has any direct or indirect interest in, or that derives any benefit from, a covered lease.CommentsClose CommentsPermalink





(3) MULTIPLE LESSEES-CommentsClose CommentsPermalink





(A) IN GENERAL- For purposes of paragraph (1), if there are multiple lessees that own a share of a covered lease, the Secretary may implement separate agreements with any lessee with a share of the covered lease that modifies the payment responsibilities with respect to the share of the lessee to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).CommentsClose CommentsPermalink





(B) TREATMENT OF SHARE AS COVERED LEASE- Beginning on the effective date of an agreement under subparagraph (A), any share subject to the agreement shall not constitute a covered lease with respect to any lessees that entered into the agreement.CommentsClose CommentsPermalink





(b) Transfers- A lessee or any other person who has any direct or indirect interest in, or who derives a benefit from, a lease shall not be eligible to obtain by sale or other transfer (including through a swap, spinoff, servicing, or other agreement) any covered lease, the economic benefit of any covered lease, or any other lease for the production of oil or natural gas in the Gulf of Mexico under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless the lessee or other person has--CommentsClose CommentsPermalink





(1) renegotiated each covered lease with respect to which the lessee or person is a lessee, to modify the payment responsibilities of the lessee or person to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); orCommentsClose CommentsPermalink





(2) entered into an agreement with the Secretary to modify the terms of all covered leases of the lessee or other person to include limitations on royalty relief based on market prices that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).CommentsClose CommentsPermalink





(c) Use of Amounts for Deficit Reduction- Notwithstanding any other provision of law, any amounts received by the United States as rentals or royalties under covered leases shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.CommentsClose CommentsPermalink





(d) Definitions- In this section--CommentsClose CommentsPermalink





(1) COVERED LEASE- The term ‘covered lease’ means a lease for oil or gas production in the Gulf of Mexico that is--CommentsClose CommentsPermalink





(A) in existence on the date of enactment of this Act;CommentsClose CommentsPermalink





(B) issued by the Department of the Interior under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (43 U.S.C. 1337 note; Public Law 104-58); andCommentsClose CommentsPermalink





(C) not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).CommentsClose CommentsPermalink





(2) LESSEE- The term ‘lessee’ includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee.CommentsClose CommentsPermalink





(3) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink

SEC. 203. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.

The Secretary of the Interior shall agree to a request by any lessee to amend any lease issued for any Central and Western Gulf of Mexico tract in the period of January 1, 1996, through November 28, 2000, to incorporate price thresholds applicable to royalty suspension provisions, that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any amended lease shall impose the new or revised price thresholds effective October 1, 2011. Existing lease provisions shall prevail through September 30, 2011.CommentsClose CommentsPermalink

TITLE III--PROTECTION FROM PRICE GOUGINGCommentsClose CommentsPermalink

SEC. 301. SHORT TITLE.

This title may be cited as the ‘Federal Price Gouging Prevention Act’.CommentsClose CommentsPermalink

SEC. 302. UNCONSCIONABLE PRICING OF GASOLINE AND OTHER PETROLEUM DISTILLATES DURING EMERGENCIES.

(a) Unconscionable Pricing-CommentsClose CommentsPermalink





(1) IN GENERAL- It shall be unlawful for any person to sell, at wholesale or at retail in an area and during a period of an international crisis affecting the oil markets proclaimed under paragraph (2), gasoline or any other petroleum distillate covered by a proclamation issued under paragraph (2) at a price that--CommentsClose CommentsPermalink





(A) is unconscionably excessive; andCommentsClose CommentsPermalink





(B) indicates the seller is taking unfair advantage of the circumstances related to an international crisis to increase prices unreasonably.CommentsClose CommentsPermalink





(2) ENERGY EMERGENCY PROCLAMATION-CommentsClose CommentsPermalink





(A) IN GENERAL- The President may issue a proclamation of an international crisis affecting the oil markets and may designate any area within the jurisdiction of the United States, where the prohibition in paragraph (1) shall apply. The proclamation shall state the geographic area covered, the gasoline or other petroleum distillate covered, and the time period that such proclamation shall be in effect.CommentsClose CommentsPermalink





(B) DURATION- The proclamation--CommentsClose CommentsPermalink





(i) may not apply for a period of more than 30 consecutive days, but may be renewed for such consecutive periods, each not to exceed 30 days, as the President determines appropriate; andCommentsClose CommentsPermalink





(ii) may include a period of time not to exceed 1 week preceding a reasonably foreseeable emergency.CommentsClose CommentsPermalink





(3) FACTORS CONSIDERED- In determining whether a person has violated paragraph (1), there shall be taken into account, among other factors--CommentsClose CommentsPermalink





(A) whether the amount charged by such person for the applicable gasoline or other petroleum distillate at a particular location in an area covered by a proclamation issued under paragraph (2) during the period such proclamation is in effect--CommentsClose CommentsPermalink





(i) grossly exceeds the average price at which the applicable gasoline or other petroleum distillate was offered for sale by that person during the 30 days prior to such proclamation;CommentsClose CommentsPermalink





(ii) grossly exceeds the price at which the same or similar gasoline or other petroleum distillate was readily obtainable in the same area from other competing sellers during the same period;CommentsClose CommentsPermalink





(iii) reasonably reflected additional costs, not within the control of that person, that were paid, incurred, or reasonably anticipated by that person, or reflected additional risks taken by that person to produce, distribute, obtain, or sell such product under the circumstances; andCommentsClose CommentsPermalink





(iv) was substantially attributable to local, regional, national, or international market conditions; andCommentsClose CommentsPermalink





(B) whether the quantity of gasoline or other petroleum distillate the person produced, distributed, or sold in an area covered by a proclamation issued under paragraph (2) during a 30-day period following the issuance of such proclamation increased over the quantity that that person produced, distributed, or sold during the 30 days prior to such proclamation, taking into account usual seasonal demand variations.CommentsClose CommentsPermalink





(b) Definitions- As used in this section--CommentsClose CommentsPermalink





(1) the term ‘wholesale’, with respect to sales of gasoline or other petroleum distillates, means either truckload or smaller sales of gasoline or petroleum distillates where title transfers at a product terminal or a refinery, and dealer tank wagon sales of gasoline or petroleum distillates priced on a delivered basis to retail outlets; andCommentsClose CommentsPermalink





(2) the term ‘retail’, with respect to sales of gasoline or other petroleum distillates, includes all sales to end users such as motorists as well as all direct sales to other end users such as agriculture, industry, residential, and commercial consumers.CommentsClose CommentsPermalink

SEC. 303. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

(a) Enforcement by FTC- A violation of section 302 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission shall enforce this title in the same manner, by the same means, and with the same jurisdiction as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this title. In enforcing section 302 of this title, the Commission shall give priority to enforcement actions concerning companies with total United States wholesale or retail sales of gasoline and other petroleum distillates in excess of $10,000,000,000 per year.CommentsClose CommentsPermalink





(b) Civil Penalties-CommentsClose CommentsPermalink





(1) IN GENERAL- Notwithstanding the penalties set forth under the Federal Trade Commission Act, any person who violates section 302 with actual knowledge or knowledge fairly implied on the basis of objective circumstances shall be subject to--CommentsClose CommentsPermalink





(A) a civil penalty of not more than 3 times the amount of profits gained by such person through such violation; orCommentsClose CommentsPermalink





(B) a civil penalty of not more than $100,000,000.CommentsClose CommentsPermalink





(2) METHOD- The penalties provided by paragraph (1) shall be obtained in the same manner as civil penalties obtained under section 5 of the Federal Trade Commission Act (15 U.S.C. 45).CommentsClose CommentsPermalink





(3) MULTIPLE OFFENSES; MITIGATING FACTORS- In assessing the penalty provided by subsection (a)--CommentsClose CommentsPermalink





(A) each day of a continuing violation shall be considered a separate violation; andCommentsClose CommentsPermalink





(B) the court shall take into consideration, among other factors, the seriousness of the violation and the efforts of the person committing the violation to remedy the harm caused by the violation in a timely manner.CommentsClose CommentsPermalink

SEC. 304. CRIMINAL PENALTIES.

(a) In General- In addition to any penalty applicable under section 303, any person who violates section 302 shall be fined under title 18, United States Code, in an amount not to exceed $500,000,000.CommentsClose CommentsPermalink





(b) Enforcement- The criminal penalty provided by subsection (a) may be imposed only pursuant to a criminal action brought by the Attorney General or other officer of the Department of Justice. The Attorney General shall give priority to enforcement actions concerning companies with total United States wholesale or retail sales of gasoline and other petroleum distillates in excess of $10,000,000,000 per year.CommentsClose CommentsPermalink

SEC. 305. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.

(a) In General- A State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate district court of the United States to enforce the provisions of section 302 of this title, or to impose the civil penalties authorized by section 303(b)(1)(B), whenever the attorney general of the State has reason to believe that the interests of the residents of the State have been or are being threatened or adversely affected by a violation of this title or a regulation under this title, involving a retail sale.CommentsClose CommentsPermalink





(b) Notice- The State shall serve written notice to the Federal Trade Commission of any civil action under subsection (a) prior to initiating such civil action. The notice shall include a copy of the complaint to be filed to initiate such civil action, except that if it is not feasible for the State to provide such prior notice, the State shall provide such notice immediately upon instituting such civil action.CommentsClose CommentsPermalink





(c) Authority To Intervene- Upon receiving the notice required by subsection (b), the Federal Trade Commission may intervene in such civil action and upon intervening--CommentsClose CommentsPermalink





(1) be heard on all matters arising in such civil action; andCommentsClose CommentsPermalink





(2) file petitions for appeal of a decision in such civil action.CommentsClose CommentsPermalink





(d) Construction- For purposes of bringing any civil action under subsection (a), nothing in this section shall prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.CommentsClose CommentsPermalink





(e) Venue; Service of Process- In a civil action brought under subsection (a)--CommentsClose CommentsPermalink





(1) the venue shall be a judicial district in which--CommentsClose CommentsPermalink





(A) the defendant operates;CommentsClose CommentsPermalink





(B) the defendant was authorized to do business; orCommentsClose CommentsPermalink





(C) the defendant in the civil action is found;CommentsClose CommentsPermalink





(2) process may be served without regard to the territorial limits of the district or of the State in which the civil action is instituted; andCommentsClose CommentsPermalink





(3) a person who participated with the defendant in an alleged violation that is being litigated in the civil action may be joined in the civil action without regard to the residence of the person.CommentsClose CommentsPermalink





(f) Limitation on State Action While Federal Action Is Pending- If the Federal Trade Commission has instituted a civil action or an administrative action for violation of this title, no State attorney general, or official or agency of a State, may bring an action under this subsection during the pendency of that action against any defendant named in the complaint of the Federal Trade Commission or the other agency for any violation of this title alleged in the complaint.CommentsClose CommentsPermalink





(g) Enforcement of State Law- Nothing contained in this section shall prohibit an authorized State official from proceeding in State court to enforce a civil or criminal statute of such State.CommentsClose CommentsPermalink

SEC. 306. EFFECT ON OTHER LAWS.

(a) Other Authority of Federal Trade Commission- Nothing in this title shall be construed to limit or affect in any way the Federal Trade Commission’s authority to bring enforcement actions or take any other measure under the Federal Trade Commission Act (15 U.S.C. 41 et seq.) or any other provision of law.CommentsClose CommentsPermalink





(b) State Law- Nothing in this title preempts any State law.CommentsClose CommentsPermalink

TITLE IV--STRATEGIC PETROLEUM RESERVECommentsClose CommentsPermalink

SEC. 401. SHORT TITLE.

This title may be cited as the ‘Enhanced Supply and Price Reduction Act of 2011’ or the ‘Enhanced SPR Act’.CommentsClose CommentsPermalink

SEC. 402. DEFINITION.

In this title, the term ‘Secretary’ means the Secretary of Energy.CommentsClose CommentsPermalink

SEC. 403. PETROLEUM PRODUCT RESERVE.

Section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 6234(a)) is amended by striking ‘1 billion barrels of petroleum products’ and inserting ‘1,000,000,000 barrels of petroleum products (including refined petroleum products)’.CommentsClose CommentsPermalink

SEC. 404. SALE OF OIL FROM THE STRATEGIC PETROLEUM RESERVE AND ACQUISITION OF REFINED PETROLEUM PRODUCT.

(a) Initial Petroleum Sale and Replacement-CommentsClose CommentsPermalink





(1) AUTHORITY- Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary may sell, in the amounts and on the schedule described in subsection (b), petroleum from the Strategic Petroleum Reserve and acquire refined petroleum product.CommentsClose CommentsPermalink





(2) PROCEEDS- If the Secretary acts pursuant to paragraph (1), the Secretary shall--CommentsClose CommentsPermalink





(A) deposit the cash proceeds from sales under subparagraph (A) into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); andCommentsClose CommentsPermalink





(B) from the cash proceeds deposited pursuant to paragraph (2), withdraw the amount necessary to pay for the direct administrative and operational costs of the sale and acquisition, including for acquisition and maintenance of, and improvements to, storage facilities.CommentsClose CommentsPermalink





(b) Amounts and Schedule-CommentsClose CommentsPermalink





(1) IN GENERAL- The sale and acquisition described in subsection (a) may require the offer for sale of a total quantity of no more than 30,000,000 barrels of petroleum from the Strategic Petroleum Reserve. The sale may commence within 180 days after the date of enactment of this Act and may end not later than 3 years after such date of enactment. In no event shall the Secretary sell barrels of oil under subsection (a) that would result in a Strategic Petroleum Reserve that contains fewer than 90 percent of the total amount of barrels in the Strategic Petroleum Reserve as of the date of enactment of this Act.CommentsClose CommentsPermalink





(2) ACQUISITIONS- If the Secretary acts pursuant to subsection (a)(1), the Secretary shall acquire refined petroleum product under this section--CommentsClose CommentsPermalink





(A) beginning no sooner than 180 days after the date of enactment of this Act;CommentsClose CommentsPermalink





(B) ending no later than 5 years after the date of enactment of this Act; andCommentsClose CommentsPermalink





(C) in a manner so as to minimize both the cost to the Federal Government and market disruption associated with the acquisition.CommentsClose CommentsPermalink

SEC. 405. REPORT TO CONGRESS.

Not later than 18 months after the commencement of any sale authorized pursuant to section 404, the Secretary shall transmit to Congress a report--CommentsClose CommentsPermalink





(1) describing the amounts and types of petroleum sold and refined petroleum product acquired under section 404;CommentsClose CommentsPermalink





(2) describing the actions taken for the storage of refined petroleum product acquired under section 404, and identifying any requirements for additional facilities;CommentsClose CommentsPermalink





(3) describing efforts the Department of Energy has taken to ensure that distributors and importers are not discouraged from maintaining and increasing supplies of refined petroleum products;CommentsClose CommentsPermalink





(4) describing actions that the Department of Energy has taken and plans to take to ensure quality of refined petroleum product in the Reserve, including the rotation of product stored; andCommentsClose CommentsPermalink





(5) analyzing the effects that activities under section 404 have had on oil markets.CommentsClose CommentsPermalink

SEC. 406. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND EXCHANGE IN PUBLIC INTEREST.

Section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(k) Public Interest-CommentsClose CommentsPermalink





‘(1) GENERAL AUTHORITY- If, after consultation with the Secretary of Energy, the Secretary of Defense, and the Chairman of the Federal Trade Commission, the President finds that a circumstance, other than those described in subsections (d) or (h) of this section, exists of such significance and scope that action under this subsection would be warranted to address market manipulation or otherwise be in the public interest, then the President may instruct the Secretary to drawdown and sell or exchange petroleum product from the Reserve under this subsection.CommentsClose CommentsPermalink





‘(2) LIMITATIONS- Petroleum product from the Reserve may not be drawn down or exchanged under this subsection--CommentsClose CommentsPermalink





‘(A) in excess of an aggregate of 30,000,000 barrels with respect to each circumstance warranting a finding under paragraph (1); orCommentsClose CommentsPermalink





‘(B) in an amount that would lower the aggregate level of petroleum product in the Reserve to less than 600,000,000 barrels of petroleum product.CommentsClose CommentsPermalink





‘(3) REPORT TO CONGRESS- At the end of any month during which there is a drawdown and sale of petroleum products from the Reserve under this subsection, the Secretary shall transmit a report to the Congress containing an account of the drawdown and sale, along with an assessment of the effects of the drawdown and sale.CommentsClose CommentsPermalink





‘(4) REPLENISHMENT- In the case of a drawdown and sale or exchange under this subsection, the Secretary shall provide for the timely replenishment of the Reserve in accordance with the objectives and procedures set forth in section 160.’.CommentsClose CommentsPermalink