I 

112TH CONGRESS 

1ST SESSION H. R. 1807 

To provide for the sale of oil from the Strategic Petroleum Reserve and 

acquisition of refined petroleum product, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 10, 2011 

Mr. MARKEY introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

A BILL 

To provide for the sale of oil from the Strategic Petroleum 

Reserve and acquisition of refined petroleum product, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Enhanced Supply and 

5 Price Reduction Act of 2011’’ or the ‘‘Enhanced SPR 

6 Act’’. 

7 SEC. 2. DEFINITION. 

8 In this Act, the term ‘‘Secretary’’ means the Sec9 retary of Energy. 


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1 SEC. 3. PETROLEUM PRODUCT RESERVE. 

2 Section 154(a) of the Energy Policy and Conserva3 tion Act (42 U.S.C. 6234(a)) is amended by striking ‘‘1 

4 billion barrels of petroleum products’’ and inserting 

5 ‘‘1,000,000,000 barrels of petroleum products (including 

6 refined petroleum products)’’. 

7 SEC. 4. SALE OF OIL FROM THE STRATEGIC PETROLEUM 

8 RESERVE AND ACQUISITION OF REFINED PE9 TROLEUM PRODUCT. 

10 (a) INITIAL PETROLEUM SALE AND REPLACE11 MENT.— 

12 (1) AUTHORITY.—Notwithstanding section 161 

13 of the Energy Policy and Conservation Act (42 

14 U.S.C. 6241), the Secretary may sell, in the 

15 amounts and on the schedule described in subsection 

16 (b), petroleum from the Strategic Petroleum Reserve 

17 and acquire refined petroleum product. 

18 (2) PROCEEDS.—If the Secretary acts pursuant 

19 to paragraph (1), the Secretary shall— 

20 (A) deposit the cash proceeds from sales 

21 under subparagraph (A) into the SPR Petro22 leum Account established under section 167 of 

23 the Energy Policy and Conservation Act (42 

24 U.S.C. 6247); and 

25 (B) from the cash proceeds deposited pur26 suant to paragraph (2), withdraw the amount 


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1 necessary to pay for the direct administrative 

2 and operational costs of the sale and acquisi3 tion, including for acquisition and maintenance 

4 of, and improvements to, storage facilities. 

5 (b) AMOUNTS AND SCHEDULE.— 

6 (1) IN GENERAL.—The sale and acquisition de7 scribed in subsection (a) may require the offer for 

8 sale of a total quantity of no more than 30,000,000 

9 barrels of petroleum from the Strategic Petroleum 

10 Reserve. The sale may commence within 180 days 

11 after the date of enactment of this Act and may end 

12 not later than 3 years after such date of enactment. 

13 In no event shall the Secretary sell barrels of oil 

14 under subsection (a) that would result in a Strategic 

15 Petroleum Reserve that contains fewer than 90 per16 cent of the total amount of barrels in the Strategic 

17 Petroleum Reserve as of the date of enactment of 

18 this Act. 

19 (2) ACQUISITIONS.—If the Secretary acts pur20 suant to subsection (a)(1), the Secretary shall ac21 quire refined petroleum product under this section— 

22 (A) beginning no sooner than 180 days 

23 after the date of enactment of this Act; 

24 (B) ending no later than 5 years after the 

25 date of enactment of this Act; and 


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1 (C) in a manner so as to minimize both 

2 the cost to the Federal Government and market 

3 disruption associated with the acquisition. 

4 SEC. 5. REPORT TO CONGRESS. 

5 Not later than 18 months after the commencement 

6 of any sale authorized pursuant to section 4, the Secretary 

7 shall transmit to Congress a report— 

8 (1) describing the amounts and types of petro9 leum sold and refined petroleum product acquired 

10 under section 4; 

11 (2) describing the actions taken for the storage 

12 of refined petroleum product acquired under section 

13 4, and identifying any requirements for additional 

14 facilities; 

15 (3) describing efforts the Department of En16 ergy has taken to ensure that distributors and im17 porters are not discouraged from maintaining and 

18 increasing supplies of refined petroleum products; 

19 (4) describing actions that the Department of 

20 Energy has taken and plans to take to ensure qual21 ity of refined petroleum product in the Reserve, in22 cluding the rotation of product stored; and 

23 (5) analyzing the effects that activities under 

24 section 4 have had on oil markets. 


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1 SEC. 6. STRATEGIC PETROLEUM RESERVE DRAWDOWN 

2 AND EXCHANGE IN PUBLIC INTEREST. 

3 Section 161 of the Energy Policy and Conservation 

4 Act (42 U.S.C. 6241) is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(k) PUBLIC INTEREST.— 

7 ‘‘(1) GENERAL AUTHORITY.—If, after consulta8 tion with the Secretary of Energy, the Secretary of 

9 Defense, and the Chairman of the Federal Trade 

10 Commission, the President finds that a cir11 cumstance, other than those described in subsections 

12 (d) or (h) of this section, exists of such significance 

13 and scope that action under this subsection would be 

14 warranted to address market manipulation or other15 wise be in the public interest, then the President 

16 may instruct the Secretary to drawdown and sell or 

17 exchange petroleum product from the Reserve under 

18 this subsection. 

19 ‘‘(2) LIMITATIONS.—Petroleum product from 

20 the Reserve may not be drawn down or exchanged 

21 under this subsection— 

22 ‘‘(A) in excess of an aggregate of 

23 30,000,000 barrels with respect to each cir24 cumstance warranting a finding under para25 graph (1); or 


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1 ‘‘(B) in an amount that would lower the 

2 aggregate level of petroleum product in the Re3 serve to less than 600,000,000 barrels of petro4 leum product. 

5 ‘‘(3) REPORT TO CONGRESS.—At the end of 

6 any month during which there is a drawdown and 

7 sale of petroleum products from the Reserve under 

8 this subsection, the Secretary shall transmit a report 

9 to the Congress containing an account of the draw10 down and sale, along with an assessment of the ef11 fects of the drawdown and sale. 

12 ‘‘(4) REPLENISHMENT.—In the case of a draw13 down and sale or exchange under this subsection, 

14 the Secretary shall provide for the timely replenish15 ment of the Reserve in accordance with the objec16 tives and procedures set forth in section 160.’’. 

Æ 


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