To provide for the sale of oil from the Strategic Petroleum Reserve and acquisition of refined petroleum product, and for other purposes.

Summary: Enhanced Supply and Price Reduction Act of 2011 or Enhanced SPR Act - Amends the Energy Policy and Conservation Act to require the Strategic Petroleum Reserve (SPR) to include refined petroleum products within its required capacity of 1 billion barrels of petroleum products.

Authorizes the Secretary of Energy (DOE) to sell at least 30 million barrels of petroleum from the SPR and acquire refined petroleum product. Prescribes a schedule for such transactions.

Directs the Secretary to deposit the cash proceeds from such sales into the SPR Petroleum Account.

 Authorizes the President to instruct the Secretary to drawdown and sell or exchange petroleum product from the SPR if a circumstance exists of such significance and scope that action would be warranted to address market manipulation or otherwise be in the public interest.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enhanced Supply and Price Reduction 
Act of 2011'' or the ``Enhanced SPR Act''.

SEC. 2. DEFINITION.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

SEC. 3. 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)''.

SEC. 4. SALE OF OIL FROM THE STRATEGIC PETROLEUM RESERVE AND 
              ACQUISITION OF REFINED PETROLEUM PRODUCT.

    (a) Initial Petroleum Sale and Replacement.--
            (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.
            (2) Proceeds.--If the Secretary acts pursuant to paragraph 
        (1), the Secretary shall--
                    (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); and
                    (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.
    (b) Amounts and Schedule.--
            (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.
            (2) Acquisitions.--If the Secretary acts pursuant to 
        subsection (a)(1), the Secretary shall acquire refined 
        petroleum product under this section--
                    (A) beginning no sooner than 180 days after the 
                date of enactment of this Act;
                    (B) ending no later than 5 years after the date of 
                enactment of this Act; and
                    (C) in a manner so as to minimize both the cost to 
                the Federal Government and market disruption associated 
                with the acquisition.

SEC. 5. REPORT TO CONGRESS.

    Not later than 18 months after the commencement of any sale 
authorized pursuant to section 4, the Secretary shall transmit to 
Congress a report--
            (1) describing the amounts and types of petroleum sold and 
        refined petroleum product acquired under section 4;
            (2) describing the actions taken for the storage of refined 
        petroleum product acquired under section 4, and identifying any 
        requirements for additional facilities;
            (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;
            (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; and
            (5) analyzing the effects that activities under section 4 
        have had on oil markets.

SEC. 6. 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:
    ``(k) Public Interest.--
            ``(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.
            ``(2) Limitations.--Petroleum product from the Reserve may 
        not be drawn down or exchanged under this subsection--
                    ``(A) in excess of an aggregate of 30,000,000 
                barrels with respect to each circumstance warranting a 
                finding under paragraph (1); or
                    ``(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.
            ``(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.
            ``(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.''.