SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strategic Petroleum Reserve Reform 
Act''.

SEC. 2. USE OF UNDERUTILIZED STRATEGIC PETROLEUM RESERVE FACILITIES.

    Section 168 of the Energy Policy and Conservation Act (42 U.S.C. 
6247a) is amended to read as follows:

``SEC. 168. USE OF UNDERUTILIZED FACILITIES.

    ``(a) Authority.--Notwithstanding any other provision of this 
title, the Secretary may establish and carry out a program to lease 
underutilized Strategic Petroleum Reserve storage facilities and 
related facilities to the private sector, or a foreign government or 
its representative. Petroleum products stored under this section are 
not part of the Strategic Petroleum Reserve.
    ``(b) Protection of Facilities.--Any lease entered into under the 
program established under subsection (a) shall contain provisions 
providing for fees to fully compensate the United States for all 
related costs of storage and removals of petroleum products (including 
the proportionate cost of replacement facilities necessitated as a 
result of any withdrawals) incurred by the United States as a result of 
such lease.
    ``(c) Access by the United States.--The Secretary shall ensure that 
leasing of facilities under the program established under subsection 
(a) does not impair the ability of the United States to withdraw, 
distribute, or sell petroleum products from the Strategic Petroleum 
Reserve in response to an energy emergency or to the obligations of the 
United States under the Agreement on an International Energy Program.
    ``(d) National Security.--The Secretary shall ensure that leasing 
of facilities under the program established under subsection (a) to a 
foreign government or its representative will not impair national 
security.
    ``(e) Deposits of Amounts Received.--
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts received through the leasing of facilities under the 
        program established under subsection (a) shall be deposited in 
        the general fund of the Treasury during the fiscal year in 
        which such amounts are received.
            ``(2) Costs.--The Secretary may use for costs described in 
        subsection (b) (other than costs described in subsection (f)), 
        without further appropriation, amounts received through the 
        leasing of facilities under the program established under 
        subsection (a).
    ``(f) Preparation of Facilities.--The Secretary shall only use 
amounts available in the Energy Security and Infrastructure 
Modernization Fund established by section 404 of the Bipartisan Budget 
Act of 2015 for costs described in subsection (b) of this section that 
relate to addition of facilities or changes to facilities or facility 
operations necessary to lease such facilities, including costs related 
to acquisition of land, acquisition of ancillary facilities and 
equipment, and site development, and other necessary costs related to 
capital improvement.''.

SEC. 3. PILOT PROGRAM TO LEASE STRATEGIC PETROLEUM RESERVE FACILITIES.

    (a) In General.--Part B of title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the 
end the following:

``SEC. 170. PILOT PROGRAM TO LEASE STORAGE AND RELATED FACILITIES.

    ``(a) Establishment.--In carrying out section 168 and not later 
than 180 days after the date of enactment of the Strategic Petroleum 
Reserve Reform Act, the Secretary shall establish and carry out a pilot 
program to make available for lease--
            ``(1) capacity for storage of up to 200,000,000 barrels of 
        petroleum products at Strategic Petroleum Reserve storage 
        facilities; and
            ``(2) related facilities.
    ``(b) Contents.--In carrying out the pilot program established 
under subsection (a), the Secretary shall--
            ``(1) identify appropriate Strategic Petroleum Reserve 
        storage facilities and related facilities to lease, in order to 
        make maximum use of such facilities;
            ``(2) identify and implement any changes to facilities or 
        facility operations necessary to so lease such facilities, 
        including any such changes necessary to ensure the long-term 
        structural viability and use of the facilities for purposes of 
        this part and part C;
            ``(3) make such facilities available for lease; and
            ``(4) identify environmental effects, including benefits, 
        of leasing storage facilities and related facilities.
    ``(c) Report.--Not later than 1 year after the date of enactment of 
the Strategic Petroleum Reserve Reform Act, the Secretary shall submit 
to Congress a report on the status of the pilot program established 
under subsection (a).''.
    (b) Conforming Amendment.--The table of contents for the Energy 
Policy and Conservation Act is amended by adding after the item 
relating to section 169 the following:

``Sec. 170. Pilot program to lease storage and related facilities.''.

            Passed the House of Representatives September 25, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
Strategic Petroleum Reserve Reform Act (Sec.2)This bill amends the Energy Policy and Conservation Act to authorize the Department of Energy (DOE)to lease underutilized Strategic Petroleum Reserve storage facilities to private entities. Currently, DOE may only lease these storage facilities to foreign governments.  (Sec.3)DOE must conduct a pilot program to lease underutilized storage facilities. The program must make available capacity for storage of up to 200 million barrels of petroleum products.
Strategic Petroleum Reserve Reform Act