[Federal Register Volume 83, Number 144 (Thursday, July 26, 2018)]
[Proposed Rules]
[Pages 35438-35442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15902]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 83, No. 144 / Thursday, July 26, 2018 / 
Proposed Rules

[[Page 35438]]



DEPARTMENT OF ENERGY

10 CFR Part 625

RIN 1901-AB29


SPR Standard Sales Provisions

AGENCY: Office of Fossil Energy, Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Energy (DOE or Department) proposes to amend 
its regulations to require publication of its Standard Sales Provisions 
for the price competitive sale of petroleum from the Strategic 
Petroleum Reserve (SPR) on the DOE SPR website. Any subsequent 
revisions to its Standard Sales Provisions would also be published 
solely on the DOE SPR website. DOE further proposes that DOE would 
publish notification in the Federal Register and send notification to 
registered users in the SPR sales system that DOE has revised its 
Standard Sales Provisions on the DOE SPR website. Under the proposed 
rule, Notices of Sale would reference the Standard Sales Provisions 
published on the DOE SPR website in specifying which contractual terms 
and conditions, as well as contractor financial and performance 
responsibility measures, are applicable to that particular sale. The 
proposed rule is intended to expedite the preparation of and simplify 
the content of Notices of Sale, which in turn will reduce the 
administrative burden placed on prospective bidders.

DATES: Public comment on this proposed rule will be accepted until 
August 27, 2018.

ADDRESSES: You may submit comments identified by Regulation Identifier 
Number (RIN) 1901-AB29 by any of the following methods:
    1. Federal eRulemaking Portal: Follow the instructions for 
submitting comments on the Federal eRulemaking Portal at http://www.regulations.gov.
    2. Regular Mail: Address postal mail to U.S. Department of Energy, 
Office of Fossil Energy, Office of Petroleum Reserves, P.O. Box 44375, 
Washington, DC 20026-4375.
    3. Hand Delivery or Private Delivery Services (e.g., FedEx, UPS, 
etc.): U.S. Department of Energy, Office of Petroleum Reserves, Fossil 
Energy, Forrestal Building, Room 3G-024, 1000 Independence Avenue SW, 
Washington, DC 20585. Telephone: (202) 586-8197.
    Due to potential delays in the delivery of postal mail, we 
encourage respondents to submit comments electronically to ensure 
timely receipt. Please Note: If submitting a filing via email, please 
include all related documents and attachments (e.g., exhibits) in the 
original email correspondence. Please do not include any active 
hyperlinks or password protection in any of the documents or 
attachments related to the filing. All electronic filings submitted to 
DOE must follow these guidelines to ensure that all documents are filed 
in a timely manner. Any hardcopy filing submitted greater in length 
than 50 pages must also include, at the time of the filing, a digital 
copy on disk of the entire submission.
    Docket: This notice of proposed rulemaking and any comments that 
DOE receives will be made available on the Federal eRulemaking Portal 
at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Thomas McGarry, U.S. Department of 
Energy, Office of Petroleum Reserves, Office of Fossil Energy, 
Forrestal Building, Room 3G-024, 1000 Independence Avenue SW, 
Washington, DC 20585; (202) 586-8197, email: <a href="/cdn-cgi/l/email-protection#a6d2cec9cbc7d588cbc5c1c7d4d4dfe6ced788c2c9c388c1c9d0"><span class="__cf_email__" data-cfemail="56223e393b3725783b35313724242f163e277832393378313920">[email protected]</span></a>; 
or Ronald (R.J.) Colwell, U.S. Department of Energy (GC-76), Office of 
the Assistant General Counsel for Electricity and Fossil Energy, 
Forrestal Building, Room 6D-033, 1000 Independence Ave. SW, Washington, 
DC 20585; (202) 586-8499, email: <a href="/cdn-cgi/l/email-protection#c2b0adaca3aea6eca1adaeb5a7aeae82aab3eca6ada7eca5adb4"><span class="__cf_email__" data-cfemail="26544948474a420845494a51434a4a664e570842494308414950">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background
II. Discussion of Proposed Rule
    A. Summary of the Proposed Rule
    B. Reasons for the Proposed Rule
III. Regulatory Review
    A. Executive Orders 12866 and 13563
    B. National Environmental Policy Act
    C. Regulatory Flexibility Act
    D. Paperwork Reduction Act
    E. Unfunded Mandates Reform Act of 1995
    F. Treasury and General Government Appropriations Act, 1999
    G. Executive Order 13132
    H. Executive Order 12988
    I. Treasury and General Government Appropriations Act, 2001
    J. Executive Order 13211
IV. Approval of the Office of the Secretary

I. Background

    The Strategic Petroleum Reserve (SPR) was established by the Energy 
Policy and Conservation Act (EPCA), Public Law 94-163, to store 
petroleum to diminish the impact of disruptions on petroleum supplies 
and to carry out the obligations of the United States under the 
International Energy Program. The principal method for distributing SPR 
petroleum is through price competitive sale, 42 U.S.C. 6241(e), and DOE 
has promulgated at 10 CFR part 625 certain contract terms and 
conditions--known as Standard Sales Provisions (SSPs)--that are 
expected to be contained in contracts for the sale of SPR petroleum.
    DOE's regulations call for the publication of the SSPs in the 
Federal Register and the Code of Federal Regulations as an appendix to 
the 10 CFR part 625 (10 CFR 625.4(a)). DOE's regulations also provide 
for the periodic review and republication of the SSPs in the Federal 
Register, including any revisions to such provisions (10 CFR 625.4(b)). 
First published in interim final form on January 20, 1984, the SSPs 
have since been updated and issued for public comment several times, 
with the latest version published in the Federal Register on July 7, 
2005 (70 FR 39364).
    When conducting a drawdown and sale of petroleum from the SPR, DOE 
issues a Notice of Sale, announcing the amounts and types of SPR 
petroleum to be sold, the delivery locations and modes, and other 
pertinent information. DOE's regulations provide that the Secretary of 
Energy or the Secretary's designee will specify in the Notice of Sale, 
by referencing the latest version of the SSPs, which of the SSPs would 
or would not apply to a particular sale (10 CFR 625.3(a); 625.4(c)). In 
addition, in the Notice of Sale, the Secretary could revise the terms 
and conditions or add new ones applicable to that sale (10 CFR 
625.3(a)). DOE's regulations provide that no contract can be awarded to 
an offeror who has not unconditionally agreed to all provisions made 
applicable by the Notice of Sale (10 CFR 625.3(c)).

[[Page 35439]]

II. Discussion of Proposed Rule

A. Summary of the Proposed Rule

    The proposed rule would revise 10 CFR 625.4 in several respects. 
First, the Standard Sales Provisions applicable to price competitive 
sales of petroleum \1\ from the SPR would no longer be required to be 
published in the Federal Register and in the CFR as an Appendix to 10 
CFR part 625. Instead, DOE would be required to publish the Standard 
Sales Provisions applicable to price competitive sales of petroleum 
from the SPR on the DOE SPR website, which is currently at https://www.energy.gov/fe/downloads/price-competitive-sale-strategic-petroleum-reserve-petroleum. Second, under the proposed rule, revisions to the 
Standard Sales Provisions would be published on the DOE SPR website 
instead of in the Federal Register. Third, DOE would publish 
notification in the Federal Register and send notification to 
registered users in the SPR sales system each time DOE revises and 
republishes its Standard Sales Provisions on the DOE SPR website. 
Fourth, Notices of Sale would reference the continually updated 
Standard Sales Provisions published on the DOE SPR website, instead of 
the Federal Register and the CFR, in specifying which contractual terms 
and conditions, as well as contractor financial and performance 
responsibility measures, are applicable to a particular sale.
---------------------------------------------------------------------------

    \1\ As used in this rulemaking, ``petroleum'' includes ``crude 
oil, residual fuel oil or any refined petroleum product (including 
any natural gas liquid and any natural gas liquid product) owned or 
contracted for by DOE and in storage in any permanent SPR facility, 
or temporarily stored in other storage facilities, or in transit to 
such facilities (including petroleum under contract but not yet 
delivered to a loading terminal).'' 10 CFR 625.2.
---------------------------------------------------------------------------

    In addition to these revisions to 10 CFR 625.4, the proposed rule 
would also remove the Standard Sales Provisions from the CFR by 
deleting Appendix A to 10 CFR part 625.

B. Reasons for the Proposed Rule

    Removing the requirement for publication of the Standard Sales 
Provisions in 10 CFR part 625 and instead publishing them on the DOE 
SPR website would allow DOE to provide more timely updates, ensuring 
its Standard Sales Provisions are consistent with changes in crude oil 
markets, infrastructure, ownership, technology, financial processes, 
business practices, subsequent legislation and regulations, and other 
factors.
    This proposed rule would also reduce burdens on potential offerors 
by reducing the time and cost associated with reviewing changes to the 
Standard Sales Provisions applicable to a particular sale. When a price 
competitive sale of SPR petroleum is conducted, potential offerors are 
required to review and accept the Standard Sales Provisions applicable 
to that particular sale. DOE's Standard Sales Provisions currently 
total 95 pages in each Notice of Sale and contain 76 separate sections. 
Potential offerors are expected to review and accept any changes to the 
applicable Standard Sales Provisions identified in the Notice of Sale. 
As time passes following an update to the Standard Sales Provisions, 
the changes required to be included in each Notice of Sale increase, 
which in turn results in additional time and costs associated with 
review, evaluation and acceptance by potential offerors. In a price 
competitive sale conducted in 2006, one year after the Standard Sales 
Provisions were last updated, there were four pages of changes 
involving nine sections of the Standard Sales Provisions in the Notice 
of Sale. In a price competitive sale conducted in 2017, 12 years after 
the Standard Sales Provisions were last updated, there were 11 pages of 
changes involving 24 sections of the Standard Sales Provisions in the 
Notice of Sale. Review of these changes to the Standard Sales 
Provisions each time a Notice of Sale is issued would be eliminated 
under the proposed rule, which would provide for continual updates of 
the Standard Sales Provisions on DOE's SPR website.
    The time and costs spent by industry associated with cross-
referencing changes to the Standard Sales Provisions made applicable to 
a particular sale are likely to increase due to the large number of 
required sales over the next decade.\2\ DOE estimates that it takes an 
additional two hours to review and evaluate such changes for each 
Notice of Sale. Typically, there are three individuals within a 
prospective offeror's company, representing trading, contracting, and 
legal functions, involved in reviewing the Standard Sales Provisions 
applicable to a particular sale. Given that there are currently 95 
registered entities in the SPR's crude oil sales system--only 
registered entities may participate in the price competitive sale of 
SPR petroleum--this review encompasses roughly 570 additional burden 
hours (2 hours x 3 people x 95 registered entities) of effort from 
highly paid professionals (assuming $225 per hour) in the private 
sector for each price competitive sale of SPR petroleum. The current 
SPR price competitive sales schedule is expected to result in 20 
additional statutorily-mandated sales through fiscal year 2027. Based 
on these numbers, this proposed rule would result in potential savings 
to industry of $2,565,000 over the next 10 years. Additionally, each 
sale could include more than one sales cycle, each with its own Notice 
of Sale, resulting in further increased industry burden hours, which 
would translate to additional savings under this proposed rule.
---------------------------------------------------------------------------

    \2\ Public Law 114-74, secs. 403, 404 (Nov. 2, 2015); Public Law 
114-94, sec. 32204 (Dec. 4, 2015); Public Law 114-255, sec. 5010 
(Dec. 13, 2016); Public Law 115-123, sec. 30204 (Feb. 9, 2018).
---------------------------------------------------------------------------

    Lastly, this proposed rule would decrease the time spent by DOE 
preparing, reviewing, and issuing Notices of Sale as well as updated 
Standard Sales Provisions in the CFR. For example, the most recent 
Notice of Sale, released in August 2017, was 29 pages in length, nearly 
40% of which was dedicated to amendments and modifications to DOE's 
Standard Sales Provisions. Out of the roughly 300 hours spent by DOE 
staff in preparing, reviewing, and releasing this Notice of Sale, 
approximately 120 hours would be foregone by not having to make 
amendments and modifications to DOE's Standard Sales Provisions in each 
Notice of Sale. Similarly, periodically publishing DOE's Standard Sales 
Provisions in the CFR takes considerable staff time. This proposed rule 
would reduce this effort by enabling DOE to make changes quickly and on 
a continuous, real-time basis.
    In conclusion, publishing the Standard Sales Provisions on the DOE 
SPR website, and the increased flexibility provided by this proposed 
rule to revise these Standard Sales Provisions as circumstances evolve, 
would reduce the length and complexity of Notices of Sale currently 
published by DOE, and reviewed by prospective offerors. As a result, 
administrative burdens placed on prospective offerors would be greatly 
reduced during price competitive sales of SPR petroleum. Additionally, 
by reducing the length and complexity of Notices of Sale currently 
published by DOE, the proposed rule would ensure greater clarity about 
the terms and conditions applicable to a Notice of Sale, which in turn 
would reduce the risks associated with reconciling the requirements 
established by DOE's Standard Sales Provisions in the CFR, on the one 
hand, and as modified by the particular Notice of Sale on the other 
hand. DOE anticipates that this proposed rule would encourage increased 
participation by the private sector in future price competitive sales 
of

[[Page 35440]]

petroleum from the SPR, which in turn would benefit the private sector 
by allowing for greater diversity and competition in sales of petroleum 
from the SPR. This proposed rule would also decrease the time spent by 
DOE preparing, reviewing, and issuing Notices of Sale as well as 
updating Standard Sales Provisions in the CFR.

III. Regulatory Review

A. Executive Orders 12866 and 13563

    This regulatory action has been determined to not be a 
``significant regulatory action'' under Executive Order 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993). 
Accordingly, this action was not subject to review under that Executive 
Order by the Office of Information and Regulatory Affairs of the Office 
of Management and Budget.
    DOE has also reviewed this regulation pursuant to Executive Order 
13563, issued on January 18, 2011. (76 FR 3281, Jan. 21, 2011.) E.O. 
13563 is supplemental to and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, agencies are 
required by Executive Order 13563 to: (1) Propose or adopt a regulation 
only upon a reasoned determination that its benefits justify its costs 
(recognizing that some benefits and costs are difficult to quantify); 
(2) tailor regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives, taking into account, 
among other things, and to the extent practicable, the costs of 
cumulative regulations; (3) select, in choosing among alternative 
regulatory approaches, those approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity); (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public.
    DOE concludes that this proposed rule is consistent with these 
principles. Specifically, this proposed rule would reduce burdens on 
potential offerors by reducing the time and cost associated with 
reviewing changes to the Standard Sales Provisions applicable to a 
particular sale. The proposed rule is intended to expedite the 
preparation of and simplify the content of Notices of Sale, which in 
turn will reduce the administrative burden placed on prospective 
bidders.

B. Executive Orders 13771, 13777, and 13783

    On January 30, 2017, the President issued Executive Order 13771, 
``Reducing Regulation and Controlling Regulatory Costs.'' That Order 
stated the policy of the executive branch is to be prudent and 
financially responsible in the expenditure of funds, from both public 
and private sources. The Order stated it is essential to manage the 
costs associated with the governmental imposition of private 
expenditures required to comply with Federal regulations.
    Additionally, on February 24, 2017, the President issued Executive 
Order 13777, ``Enforcing the Regulatory Reform Agenda.'' The Order 
required the head of each agency designate an agency official as its 
Regulatory Reform Officer (RRO). Each RRO oversees the implementation 
of regulatory reform initiatives and policies to ensure that agencies 
effectively carry out regulatory reforms, consistent with applicable 
law. Further, Executive Order 13777 requires the establishment of a 
regulatory task force at each agency. The regulatory task force is 
required to make recommendations to the agency head regarding the 
repeal, replacement, or modification of existing regulations, 
consistent with applicable law. At a minimum, each regulatory reform 
task force must attempt to identify regulations that:
    (i) Eliminate jobs, or inhibit job creation;
    (ii) Are outdated, unnecessary, or ineffective;
    (iii) Impose costs that exceed benefits;
    (iv) Create a serious inconsistency or otherwise interfere with 
regulatory reform initiatives and policies;
    (v) Are inconsistent with the requirements of Information Quality 
Act, or the guidance issued pursuant to that Act, in particular those 
regulations that rely in whole or in part on data, information, or 
methods that are not publicly available or that are insufficiently 
transparent to meet the standard for reproducibility; or
    (vi) Derive from or implement Executive Orders or other 
Presidential directives that have been subsequently rescinded or 
substantially modified.
    Finally, on March 28, 2017, the President signed Executive Order 
13783, entitled ``Promoting Energy Independence and Economic Growth.'' 
Among other things, Executive Order 13783 requires the heads of 
agencies to review all existing regulations, orders, guidance 
documents, policies, and any other similar agency actions 
(collectively, agency actions) that potentially burden the development 
or use of domestically produced energy resources, with particular 
attention to oil, natural gas, coal, and nuclear energy resources. Such 
review does not include agency actions that are mandated by law, 
necessary for the public interest, and consistent with the policy set 
forth elsewhere in that order.
    Executive Order 13783 defined burden for purposes of the review of 
existing regulations to mean to unnecessarily obstruct, delay, curtail, 
or otherwise impose significant costs on the siting, permitting, 
production, utilization, transmission, or delivery of energy resources.
    DOE concludes that this proposed rule is consistent with the 
directives set forth in these executive orders. Specifically, this 
proposed rule provides that DOE would publish its Standard Sales 
Provisions on the DOE SPR website as opposed to in the Federal Register 
and in the CFR. This proposed rule also provides that DOE would provide 
notice to impacted parties of revisions to its Standard Sales 
Provisions. The proposed rule is intended to expedite the preparation 
of and simplify the content of Notices of Sale, which in turn will 
reduce the administrative burden placed on prospective bidders. DOE 
also anticipates that this proposed rule would encourage increased 
participation by the private sector in future sales of petroleum from 
the SPR, which in turn would benefit the private sector by allowing for 
greater diversity and competition in sales of petroleum from the SPR.

C. National Environmental Policy Act

    Per 10 CFR 1021.410(a), DOE has determined that promulgation of 
these regulations fall into a class of actions that does not 
individually or cumulatively have a significant impact on the human 
environment as set forth under DOE's regulations implementing the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
Further, this rulemaking is covered under the Categorical Exclusion 
found in the DOE's National Environmental Policy Act regulations at 
paragraph A6 of appendix A to subpart D, 10 CFR part 1021, which 
applies to rulemakings that are strictly procedural. Accordingly, 
neither an EIS nor an EA is required.

[[Page 35441]]

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process (68 FR 7990). DOE has made its 
procedures and policies available on the Office of General Counsel's 
website: http://www.gc.doe.gov.
    DOE has reviewed this proposed rule under the provisions of the 
Regulatory Flexibility Act and the procedures and policies published on 
February 19, 2003. As discussed in the preamble, this proposed rule 
provides that DOE would publish its Standard Sales Provisions on the 
DOE SPR website, rather than in the Federal Register and in the CFR. 
This proposed rule also provides that DOE would provide notice to 
impacted parties of revisions to its Standard Sales Provisions. Because 
it would streamline the process for amending and modifying DOE's 
Standard Sales Provisions, which would in turn reduce the length and 
complexity of Notices of Sale currently published by DOE for sales of 
petroleum from the SPR, the proposed rule would not result in a 
significant economic impact on a substantial number of small entities. 
DOE anticipates that this proposed rule would encourage increased 
participation by the private sector in future sales of petroleum from 
the SPR, by reducing the opportunity cost to participate in such sales. 
This, in turn, would allow for greater diversity and competition in 
sales of SPR petroleum from the SPR, including increased participation 
by small entities.
    Therefore, DOE certifies that this rulemaking will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, DOE did not prepare an IRFA for this rulemaking. DOE's 
certification and supporting statement of factual basis will be 
provided to the Chief Counsel for Advocacy of the Small Business 
Administration for review under 5 U.S.C. 605(b).

E. Paperwork Reduction Act

    The proposed rule does not create or change any requirements 
subject to review and approval by OMB pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and the procedures 
implementing that Act, 5 CFR 1320.1 et seq. Accordingly, OMB clearance 
is not required under the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.

F. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally 
requires Federal agencies to examine closely the impacts of regulatory 
actions on tribal, state, and local governments. Subsection 101(5) of 
title I of that law defines a Federal intergovernmental mandate to 
include any regulation that would impose upon tribal, state, or local 
governments an enforceable duty, except a condition of Federal 
assistance or a duty arising from participating in a voluntary Federal 
program. Title II of that law requires each Federal agency to assess 
the effects of Federal regulatory actions on tribal, state, and local 
governments, in the aggregate, or to the private sector, other than to 
the extent such actions merely incorporate requirements specifically 
set forth in a statute. Section 202 of that title requires a Federal 
agency to perform a detailed assessment of the anticipated costs and 
benefits of any rule that includes a Federal mandate which may result 
in costs to tribal, state, or local governments, or to the private 
sector, of $100 million or more in any one year (adjusted annually for 
inflation). 2 U.S.C. 1532(a) and (b). Section 204 of that title 
requires each agency that proposes a rule containing a significant 
Federal intergovernmental mandate to develop an effective process for 
obtaining meaningful and timely input from elected officers of tribal, 
state, and local governments. 2 U.S.C. 1534.
    This proposed rule provides that DOE would publish its Standard 
Sales Provisions on the DOE SPR website, rather than in the Federal 
Register and in the CFR. DOE has determined that the proposed rule 
would not result in the expenditure by tribal, state, and local 
governments in the aggregate, or by the private sector, of $100 million 
or more in any one year. Accordingly, no assessment or analysis is 
required under the Unfunded Mandates Reform Act of 1995.

G. Treasury and General Government Appropriations Act, 1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any proposed rule that may affect family 
well-being. The proposed rule would not have any impact on the autonomy 
or integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

H. Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 1999) 
imposes certain requirements on agencies formulating and implementing 
policies or regulations that preempt state law or that have Federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the states and carefully assess the 
necessity for such actions. DOE has examined this proposed rule and has 
determined that it would not preempt state law and would not have a 
substantial direct effect on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

I. Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by section 3(a), section 3(b) of Executive Order 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) Clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provides a clear legal standard for

[[Page 35442]]

affected conduct while promoting simplification and burden reduction; 
(4) specifies the retroactive effect, if any; (5) adequately defines 
key terms; and (6) addresses other important issues affecting clarity 
and general draftsmanship under any guidelines issued by the Attorney 
General. Section 3(c) of Executive Order 12988 requires Executive 
agencies to review regulations in light of applicable standards in 
section 3(a) and section 3(b) to determine whether they are met or it 
is unreasonable to meet one or more of them. DOE has completed the 
required review and determined that, to the extent permitted by law, 
the proposed rule meets the relevant standards of Executive Order 
12988.

J. Treasury and General Government Appropriations Act, 2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516 note) provides for agencies to review most disseminations 
of information to the public under guidelines established by each 
agency pursuant to general guidelines issued by OMB.
    OMB's guidelines were published at 67 FR 8452 (February 22, 2002), 
and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). 
DOE has reviewed this proposed rule under the OMB and DOE guidelines 
and has concluded that it is consistent with applicable policies in 
those guidelines.

K. Executive Order 13211

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001) requires Federal agencies to prepare and submit to the 
OMB, a Statement of Energy Effects for any proposed significant energy 
action. A ``significant energy action'' is defined as any action by an 
agency that promulgated or is expected to lead to promulgation of a 
final rule, and that: (1) Is a significant regulatory action under 
Executive Order 12866, or any successor order; and (2) is likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any proposed significant energy action, 
the agency must give a detailed statement of any adverse effects on 
energy supply, distribution, or use should the proposal be implemented, 
and of reasonable alternatives to the action and their expected 
benefits on energy supply, distribution, and use.
    DOE has determined that this regulatory action would not have a 
significant adverse effect on the supply, distribution, or use of 
energy, and therefore is not a significant energy action. The proposed 
rule would provide for the publication of DOE's Standard Sales 
Provisions on the SPR website. DOE concluded, as discussed elsewhere in 
the preamble for this proposed rule, that this proposed rule would 
encourage increased participation by the private sector in future sales 
of petroleum from the SPR, by reducing the opportunity cost to 
participate in such sales. This increased participation would allow for 
greater diversity and competition in sales of SPR petroleum from the 
SPR, including increased participation by small entities as well as 
larger industry participants. This increased participation, however, is 
not expected to have a significant adverse effect on the supply, 
distribution, or use of energy because increased participation in the 
bidding process does not change the quantity of SPR petroleum offered 
or delivered. Accordingly, DOE has not prepared a Statement of Energy 
Effects.

IV. Approval of the Office of the Secretary

    The Secretary of Energy has approved the publication of this 
proposed rule.

List of Subjects in 10 CFR Part 625

    Government contracts, Oil and gas reserves, Strategic and critical 
materials.

    Signed in Washington, DC, on July 19, 2018.
Steven E. Winberg,
Assistant Secretary, Office of Fossil Energy.

    For the reasons stated in the preamble, DOE proposes to amend part 
625, chapter II of title 10, Code of Federal Regulations as set forth 
below:

PART 625--PRICE COMPETITIVE SALE OF STRATEGIC PETROLEUM RESERVE 
PETROLEUM

0
1. The authority citation for part 625 continues to read as follows:

    Authority:  15 U.S.C 761; 42 U.S.C. 7101; 42 U.S.C. 6241.

0
2. Section 625.4 is revised to read as follows:


Sec.  625.4  Publication of the Standard Sales Provisions.

    (a) Publication. The Standard Sales Provisions shall be published 
on the U.S. Department of Energy Strategic Petroleum Reserve website 
(https://www.energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve).
    (b) Revisions of the Standard Sales Provisions. The Standard Sales 
Provisions shall be reviewed on a continuous basis and republished on 
the Department of Energy Strategic Petroleum Reserve website. 
Notification of revisions of the Standard Sales Provisions shall be 
made in the Federal Register and sent to existing registered users in 
the SPR sales system.
    (c) Notification of applicable clauses. The Notice of Sale will 
specify, by referencing the Department of Energy Strategic Petroleum 
Reserve website, which contractual terms and conditions and contractor 
financial and performance responsibility measures contained or 
described therein are applicable to that particular sale.

Appendix A to Part 625 [Removed]

0
3. Appendix A to part 625 is removed.

[FR Doc. 2018-15902 Filed 7-25-18; 8:45 am]
BILLING CODE 6450-01-P


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