I 

112TH CONGRESS 

1ST SESSION H. R. 1748 

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

IN THE HOUSE OF REPRESENTATIVES 

MAY 5, 2011 

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 concerned 

A BILL 

To provide consumers relief from high gas prices, 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 ‘‘Taxpayer and Gas 

5 Price Relief Act of 2011’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 


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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. 

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

of inventory. 

Sec. 103. Limitation on deduction for intangible drilling and development costs 

of major integrated oil companies in the case of oil and gas 

wells. 

TITLE II—DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES 

Sec. 201. Short title. 

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

Sec. 203. Price thresholds for royalty suspension provisions. 

TITLE III—PROTECTION FROM PRICE GOUGING 

Sec. 301. Short title. 

Sec. 302. Unconscionable pricing of gasoline and other petroleum distillates 

during emergencies. 

Sec. 303. Enforcement by the Federal Trade Commission. 

Sec. 304. Criminal penalties. 

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

Sec. 306. Effect on other laws. 

TITLE IV—STRATEGIC PETROLEUM RESERVE 

Sec. 401. Short title. 

Sec. 402. Definition. 

Sec. 403. Petroleum product reserve. 

Sec. 404. Sale of oil from the Strategic Petroleum Reserve and acquisition of 

refined petroleum product. 

Sec. 405. Report to Congress. 

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


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1 TITLE I—DENIAL OF CERTAIN 

2 TAX BENEFITS TO MAJOR IN3 TEGRATED OIL COMPANIES 

4 SEC. 101. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO5 MESTIC PRODUCTION ACTIVITIES NOT AL6 LOWED WITH RESPECT TO OIL AND GAS AC7 TIVITIES OF MAJOR INTEGRATED OIL COM8 PANIES. 

9 (a) IN GENERAL.—Subparagraph (B) of section 

10 199(c)(4) of the Internal Revenue Code of 1986 is amend11 ed by striking ‘‘and’’ at the end of clause (ii), by striking 

12 the period at the end of clause (iii) and inserting ‘‘, and’’, 

13 and by inserting after clause (iii) the following new clause: 

14 ‘‘(iv) in the case of a major integrated 

15 oil company (as defined in section 

16 167(h)(5)), the production, refining, proc17 essing, transportation, or distribution of 

18 oil, gas, or any primary product thereof.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 


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1 SEC. 102. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE 

2 FOR LAST-IN, FIRST-OUT METHOD OF INVEN3 TORY. 

4 (a) IN GENERAL.—Section 471 of the Internal Rev5 enue Code of 1986 is amended by redesignating subsection 

6 (c) as subsection (d) and by inserting after subsection (b) 

7 the following new subsection: 

8 ‘‘(c) MAJOR INTEGRATED OIL COMPANIES INELI9 GIBLE FOR LAST-IN, FIRST-OUT METHOD.—In the case 

10 of a major integrated oil company (as defined in section 

11 167(h)(5)(B))— 

12 ‘‘(1) the last-in, first-out method of determining 

13 inventories shall in no event be treated as clearly re14 flecting income, and 

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

16 (b) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—The amendments made by 

18 this section shall apply to taxable years beginning 

19 after the date of the enactment of this Act. 

20 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

21 the case of any taxpayer required by the amend22 ments made by this section to change its method of 

23 accounting for its first taxable year beginning after 

24 the date of the enactment of this Act— 

25 (A) such change shall be treated as initi26 ated by the taxpayer, 


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1 (B) such change shall be treated as made 

2 with the consent of the Secretary of the Treas3 ury, and 

4 (C) if the net amount of the adjustments 

5 required to be taken into account by the tax6 payer under section 481 of the Internal Rev7 enue Code of 1986 is positive, such amount 

8 shall be taken into account over a period of 8 

9 years beginning with such first taxable year. 

10 SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE 

11 DRILLING AND DEVELOPMENT COSTS OF 

12 MAJOR INTEGRATED OIL COMPANIES IN THE 

13 CASE OF OIL AND GAS WELLS. 

14 (a) IN GENERAL.—Subsection (c) of section 263 of 

15 the Internal Revenue Code of 1986 is amended by adding 

16 at the end the following new sentence: ‘‘This subsection 

17 shall not apply to intangible drilling and development costs 

18 paid or incurred by any major integrated oil company (as 

19 defined in section 167(h)(5)) in the case of oil and gas 

20 wells.’’. 

21 (b) CONFORMING AMENDMENT.—Subsection (c) of 

22 section 263 of such Code is amended by inserting ‘‘(deter23 mined without regard to the last sentence of this sub24 section)’’ after ‘‘in the same manner as such expenses are 

25 deductible in the case of oil and gas wells’’. 


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1 (c) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to amounts paid or incurred in tax3 able years beginning after the date of the enactment of 

4 this Act. 

5 TITLE II—DEFICIT REDUCTION 

6 THROUGH FAIR OIL ROYALTIES 

7 SEC. 201. SHORT TITLE. 

8 This title may be cited as the ‘‘Deficit Reduction 

9 Through Fair Oil Royalties Act’’. 

10 SEC. 202. ELIGIBILITY FOR NEW LEASES AND THE TRANS11 FER OF LEASES. 

12 (a) ISSUANCE OF NEW LEASES.— 

13 (1) IN GENERAL.—The Secretary shall not 

14 issue any new lease that authorizes the production 

15 of oil or natural gas under the Outer Continental 

16 Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per17 son described in paragraph (2) unless the person has 

18 renegotiated each covered lease with respect to which 

19 the person is a lessee, to modify the payment re20 sponsibilities of the person to require the payment of 

21 royalties if the price of oil and natural gas is greater 

22 than or equal to the price thresholds described in 

23 clauses (v) through (vii) of section 8(a)(3)(C) of the 

24 Outer Continental Shelf Lands Act (43 U.S.C. 

25 1337(a)(3)(C)). 


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1 (2) PERSONS DESCRIBED.—A person referred 

2 to in paragraph (1) is a person that— 

3 (A) is a lessee that— 

4 (i) holds a covered lease on the date 

5 on which the Secretary considers the 

6 issuance of the new lease; or 

7 (ii) was issued a covered lease before 

8 the date of enactment of this Act, but 

9 transferred the covered lease to another 

10 person or entity (including a subsidiary or 

11 affiliate of the lessee) after the date of en12 actment of this Act; or 

13 (B) any other person that has any direct 

14 or indirect interest in, or that derives any ben15 efit from, a covered lease. 

16 (3) MULTIPLE LESSEES.— 

17 (A) IN GENERAL.—For purposes of para18 graph (1), if there are multiple lessees that own 

19 a share of a covered lease, the Secretary may 

20 implement separate agreements with any lessee 

21 with a share of the covered lease that modifies 

22 the payment responsibilities with respect to the 

23 share of the lessee to include price thresholds 

24 that are equal to or less than the price thresh25 olds described in clauses (v) through (vii) of 


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1 section 8(a)(3)(C) of the Outer Continental 

2 Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 

3 (B) TREATMENT OF SHARE AS COVERED

4 LEASE.—Beginning on the effective date of an 

5 agreement under subparagraph (A), any share 

6 subject to the agreement shall not constitute a 

7 covered lease with respect to any lessees that 

8 entered into the agreement. 

9 (b) TRANSFERS.—A lessee or any other person who 

10 has any direct or indirect interest in, or who derives a 

11 benefit from, a lease shall not be eligible to obtain by sale 

12 or other transfer (including through a swap, spinoff, serv13 icing, or other agreement) any covered lease, the economic 

14 benefit of any covered lease, or any other lease for the 

15 production of oil or natural gas in the Gulf of Mexico 

16 under the Outer Continental Shelf Lands Act (43 U.S.C. 

17 1331 et seq.), unless the lessee or other person has— 

18 (1) renegotiated each covered lease with respect 

19 to which the lessee or person is a lessee, to modify 

20 the payment responsibilities of the lessee or person 

21 to include price thresholds that are equal to or less 

22 than the price thresholds described in clauses (v) 

23 through (vii) of section 8(a)(3)(C) of the Outer Con24 tinental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)); 

25 or 


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1 (2) entered into an agreement with the Sec2 retary to modify the terms of all covered leases of 

3 the lessee or other person to include limitations on 

4 royalty relief based on market prices that are equal 

5 to or less than the price thresholds described in 

6 clauses (v) through (vii) of section 8(a)(3)(C) of the 

7 Outer Continental Shelf Lands Act (43 U.S.C. 

8 1337(a)(3)(C)). 

9 (c) USE OF AMOUNTS FOR DEFICIT REDUCTION.— 

10 Notwithstanding any other provision of law, any amounts 

11 received by the United States as rentals or royalties under 

12 covered leases shall be deposited in the Treasury and used 

13 for Federal budget deficit reduction or, if there is no Fed14 eral budget deficit, for reducing the Federal debt in such 

15 manner as the Secretary of the Treasury considers appro16 priate. 

17 (d) DEFINITIONS.—In this section— 

18 (1) COVERED LEASE.—The term ‘‘covered 

19 lease’’ means a lease for oil or gas production in the 

20 Gulf of Mexico that is— 

21 (A) in existence on the date of enactment 

22 of this Act; 

23 (B) issued by the Department of the Inte24 rior under section 304 of the Outer Continental 


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1 Shelf Deep Water Royalty Relief Act (43 

2 U.S.C. 1337 note; Public Law 104–58); and 

3 (C) not subject to limitations on royalty re4 lief based on market price that are equal to or 

5 less than the price thresholds described in 

6 clauses (v) through (vii) of section 8(a)(3)(C) of 

7 the Outer Continental Shelf Lands Act (43 

8 U.S.C. 1337(a)(3)(C)). 

9 (2) LESSEE.—The term ‘‘lessee’’ includes any 

10 person or other entity that controls, is controlled by, 

11 or is in or under common control with, a lessee. 

12 (3) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of the Interior. 

14 SEC. 203. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 

15 PROVISIONS. 

16 The Secretary of the Interior shall agree to a request 

17 by any lessee to amend any lease issued for any Central 

18 and Western Gulf of Mexico tract in the period of January 

19 1, 1996, through November 28, 2000, to incorporate price 

20 thresholds applicable to royalty suspension provisions, that 

21 are equal to or less than the price thresholds described 

22 in clauses (v) through (vii) of section 8(a)(3)(C) of the 

23 Outer Continental Shelf Lands Act (43 U.S.C. 

24 1337(a)(3)(C)). Any amended lease shall impose the new 

25 or revised price thresholds effective October 1, 2011. ExVerDate Mar 15 2010 16:50 May 09, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1748.IH H1748

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1 isting lease provisions shall prevail through September 30, 

2 2011. 

3 TITLE III—PROTECTION FROM 

4 PRICE GOUGING 

5 SEC. 301. SHORT TITLE. 

6 This title may be cited as the ‘‘Federal Price Gouging 

7 Prevention Act’’. 

8 SEC. 302. UNCONSCIONABLE PRICING OF GASOLINE AND 

9 OTHER PETROLEUM DISTILLATES DURING 

10 EMERGENCIES. 

11 (a) UNCONSCIONABLE PRICING.— 

12 (1) IN GENERAL.—It shall be unlawful for any 

13 person to sell, at wholesale or at retail in an area 

14 and during a period of an international crisis affect15 ing the oil markets proclaimed under paragraph (2), 

16 gasoline or any other petroleum distillate covered by 

17 a proclamation issued under paragraph (2) at a 

18 price that— 

19 (A) is unconscionably excessive; and 

20 (B) indicates the seller is taking unfair ad21 vantage of the circumstances related to an 

22 international crisis to increase prices unreason23 ably. 

24 (2) ENERGY EMERGENCY PROCLAMATION.— 


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1 (A) IN GENERAL.—The President may 

2 issue a proclamation of an international crisis 

3 affecting the oil markets and may designate any 

4 area within the jurisdiction of the United 

5 States, where the prohibition in paragraph (1) 

6 shall apply. The proclamation shall state the ge7 ographic area covered, the gasoline or other pe8 troleum distillate covered, and the time period 

9 that such proclamation shall be in effect. 

10 (B) DURATION.—The proclamation— 

11 (i) may not apply for a period of more 

12 than 30 consecutive days, but may be re13 newed for such consecutive periods, each 

14 not to exceed 30 days, as the President de15 termines appropriate; and 

16 (ii) may include a period of time not 

17 to exceed 1 week preceding a reasonably 

18 foreseeable emergency. 

19 (3) FACTORS CONSIDERED.—In determining 

20 whether a person has violated paragraph (1), there 

21 shall be taken into account, among other factors— 

22 (A) whether the amount charged by such 

23 person for the applicable gasoline or other pe24 troleum distillate at a particular location in an 

25 area covered by a proclamation issued under 


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1 paragraph (2) during the period such proclama2 tion is in effect— 

3 (i) grossly exceeds the average price 

4 at which the applicable gasoline or other 

5 petroleum distillate was offered for sale by 

6 that person during the 30 days prior to 

7 such proclamation; 

8 (ii) grossly exceeds the price at which 

9 the same or similar gasoline or other pe10 troleum distillate was readily obtainable in 

11 the same area from other competing sellers 

12 during the same period; 

13 (iii) reasonably reflected additional 

14 costs, not within the control of that person, 

15 that were paid, incurred, or reasonably an16 ticipated by that person, or reflected addi17 tional risks taken by that person to 

18 produce, distribute, obtain, or sell such 

19 product under the circumstances; and 

20 (iv) was substantially attributable to 

21 local, regional, national, or international 

22 market conditions; and 

23 (B) whether the quantity of gasoline or 

24 other petroleum distillate the person produced, 

25 distributed, or sold in an area covered by a 


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1 proclamation issued under paragraph (2) dur2 ing a 30-day period following the issuance of 

3 such proclamation increased over the quantity 

4 that that person produced, distributed, or sold 

5 during the 30 days prior to such proclamation, 

6 taking into account usual seasonal demand vari7 ations. 

8 (b) DEFINITIONS.—As used in this section— 

9 (1) the term ‘‘wholesale’’, with respect to sales 

10 of gasoline or other petroleum distillates, means ei11 ther truckload or smaller sales of gasoline or petro12 leum distillates where title transfers at a product 

13 terminal or a refinery, and dealer tank wagon sales 

14 of gasoline or petroleum distillates priced on a deliv15 ered basis to retail outlets; and 

16 (2) the term ‘‘retail’’, with respect to sales of 

17 gasoline or other petroleum distillates, includes all 

18 sales to end users such as motorists as well as all 

19 direct sales to other end users such as agriculture, 

20 industry, residential, and commercial consumers. 

21 SEC. 303. ENFORCEMENT BY THE FEDERAL TRADE COM22 MISSION. 

23 (a) ENFORCEMENT BY FTC.—A violation of section 

24 302 shall be treated as a violation of a rule defining an 

25 unfair or deceptive act or practice prescribed under section 


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1 18(a)(1)(B) of the Federal Trade Commission Act (15 

2 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 

3 shall enforce this title in the same manner, by the same 

4 means, and with the same jurisdiction as though all appli5 cable terms and provisions of the Federal Trade Commis6 sion Act were incorporated into and made a part of this 

7 title. In enforcing section 302 of this title, the Commission 

8 shall give priority to enforcement actions concerning com9 panies with total United States wholesale or retail sales 

10 of gasoline and other petroleum distillates in excess of 

11 $10,000,000,000 per year. 

12 (b) CIVIL PENALTIES.— 

13 (1) IN GENERAL.—Notwithstanding the pen14 alties set forth under the Federal Trade Commission 

15 Act, any person who violates section 302 with actual 

16 knowledge or knowledge fairly implied on the basis 

17 of objective circumstances shall be subject to— 

18 (A) a civil penalty of not more than 3 

19 times the amount of profits gained by such per20 son through such violation; or 

21 (B) a civil penalty of not more than 

22 $100,000,000. 

23 (2) METHOD.—The penalties provided by para24 graph (1) shall be obtained in the same manner as 


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1 civil penalties obtained under section 5 of the Fed2 eral Trade Commission Act (15 U.S.C. 45). 

3 (3) MULTIPLE OFFENSES; MITIGATING FAC4 TORS.—In assessing the penalty provided by sub5 section (a)— 

6 (A) each day of a continuing violation shall 

7 be considered a separate violation; and 

8 (B) the court shall take into consideration, 

9 among other factors, the seriousness of the vio10 lation and the efforts of the person committing 

11 the violation to remedy the harm caused by the 

12 violation in a timely manner. 

13 SEC. 304. CRIMINAL PENALTIES. 

14 (a) IN GENERAL.—In addition to any penalty appli15 cable under section 303, any person who violates section 

16 302 shall be fined under title 18, United States Code, in 

17 an amount not to exceed $500,000,000. 

18 (b) ENFORCEMENT.—The criminal penalty provided 

19 by subsection (a) may be imposed only pursuant to a 

20 criminal action brought by the Attorney General or other 

21 officer of the Department of Justice. The Attorney Gen22 eral shall give priority to enforcement actions concerning 

23 companies with total United States wholesale or retail 

24 sales of gasoline and other petroleum distillates in excess 

25 of $10,000,000,000 per year. 


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1 SEC. 305. ENFORCEMENT AT RETAIL LEVEL BY STATE AT2 TORNEYS GENERAL. 

3 (a) IN GENERAL.—A State, as parens patriae, may 

4 bring a civil action on behalf of its residents in an appro5 priate district court of the United States to enforce the 

6 provisions of section 302 of this title, or to impose the 

7 civil penalties authorized by section 303(b)(1)(B), when8 ever the attorney general of the State has reason to believe 

9 that the interests of the residents of the State have been 

10 or are being threatened or adversely affected by a violation 

11 of this title or a regulation under this title, involving a 

12 retail sale. 

13 (b) NOTICE.—The State shall serve written notice to 

14 the Federal Trade Commission of any civil action under 

15 subsection (a) prior to initiating such civil action. The no16 tice shall include a copy of the complaint to be filed to 

17 initiate such civil action, except that if it is not feasible 

18 for the State to provide such prior notice, the State shall 

19 provide such notice immediately upon instituting such civil 

20 action. 

21 (c) AUTHORITY TO INTERVENE.—Upon receiving the 

22 notice required by subsection (b), the Federal Trade Com23 mission may intervene in such civil action and upon inter24 vening— 

25 (1) be heard on all matters arising in such civil 

26 action; and 


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1 (2) file petitions for appeal of a decision in such 

2 civil action. 

3 (d) CONSTRUCTION.—For purposes of bringing any 

4 civil action under subsection (a), nothing in this section 

5 shall prevent the attorney general of a State from exer6 cising the powers conferred on the attorney general by the 

7 laws of such State to conduct investigations or to admin8 ister oaths or affirmations or to compel the attendance 

9 of witnesses or the production of documentary and other 

10 evidence. 

11 (e) VENUE; SERVICE OF PROCESS.—In a civil action 

12 brought under subsection (a)— 

13 (1) the venue shall be a judicial district in 

14 which— 

15 (A) the defendant operates; 

16 (B) the defendant was authorized to do 

17 business; or 

18 (C) the defendant in the civil action is 

19 found; 

20 (2) process may be served without regard to the 

21 territorial limits of the district or of the State in 

22 which the civil action is instituted; and 

23 (3) a person who participated with the defend24 ant in an alleged violation that is being litigated in 


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1 the civil action may be joined in the civil action with2 out regard to the residence of the person. 

3 (f) LIMITATION ON STATE ACTION WHILE FEDERAL

4 ACTION IS PENDING.—If the Federal Trade Commission 

5 has instituted a civil action or an administrative action 

6 for violation of this title, no State attorney general, or offi7 cial or agency of a State, may bring an action under this 

8 subsection during the pendency of that action against any 

9 defendant named in the complaint of the Federal Trade 

10 Commission or the other agency for any violation of this 

11 title alleged in the complaint. 

12 (g) ENFORCEMENT OF STATE LAW.—Nothing con13 tained in this section shall prohibit an authorized State 

14 official from proceeding in State court to enforce a civil 

15 or criminal statute of such State. 

16 SEC. 306. EFFECT ON OTHER LAWS. 

17 (a) OTHER AUTHORITY OF FEDERAL TRADE COM18 MISSION.—Nothing in this title shall be construed to limit 

19 or affect in any way the Federal Trade Commission’s au20 thority to bring enforcement actions or take any other 

21 measure under the Federal Trade Commission Act (15 

22 U.S.C. 41 et seq.) or any other provision of law. 

23 (b) STATE LAW.—Nothing in this title preempts any 

24 State law. 


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1 TITLE IV—STRATEGIC 

2 PETROLEUM RESERVE 

3 SEC. 401. SHORT TITLE. 

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

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

6 Act’’. 

7 SEC. 402. DEFINITION. 

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

10 SEC. 403. PETROLEUM PRODUCT RESERVE. 

11 Section 154(a) of the Energy Policy and Conserva12 tion Act (42 U.S.C. 6234(a)) is amended by striking ‘‘1 

13 billion barrels of petroleum products’’ and inserting 

14 ‘‘1,000,000,000 barrels of petroleum products (including 

15 refined petroleum products)’’. 

16 SEC. 404. SALE OF OIL FROM THE STRATEGIC PETROLEUM 

17 RESERVE AND ACQUISITION OF REFINED PE18 TROLEUM PRODUCT. 

19 (a) INITIAL PETROLEUM SALE AND REPLACE20 MENT.— 

21 (1) AUTHORITY.—Notwithstanding section 161 

22 of the Energy Policy and Conservation Act (42 

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

24 amounts and on the schedule described in subsection 


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1 (b), petroleum from the Strategic Petroleum Reserve 

2 and acquire refined petroleum product. 

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

4 to paragraph (1), the Secretary shall— 

5 (A) deposit the cash proceeds from sales 

6 under subparagraph (A) into the SPR Petro7 leum Account established under section 167 of 

8 the Energy Policy and Conservation Act (42 

9 U.S.C. 6247); and 

10 (B) from the cash proceeds deposited pur11 suant to paragraph (2), withdraw the amount 

12 necessary to pay for the direct administrative 

13 and operational costs of the sale and acquisi14 tion, including for acquisition and maintenance 

15 of, and improvements to, storage facilities. 

16 (b) AMOUNTS AND SCHEDULE.— 

17 (1) IN GENERAL.—The sale and acquisition de18 scribed in subsection (a) may require the offer for 

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

20 barrels of petroleum from the Strategic Petroleum 

21 Reserve. The sale may commence within 180 days 

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

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

24 In no event shall the Secretary sell barrels of oil 

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


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1 Petroleum Reserve that contains fewer than 90 per2 cent of the total amount of barrels in the Strategic 

3 Petroleum Reserve as of the date of enactment of 

4 this Act. 

5 (2) ACQUISITIONS.—If the Secretary acts pur6 suant to subsection (a)(1), the Secretary shall ac7 quire refined petroleum product under this section— 

8 (A) beginning no sooner than 180 days 

9 after the date of enactment of this Act; 

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

11 date of enactment of this Act; and 

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

13 the cost to the Federal Government and market 

14 disruption associated with the acquisition. 

15 SEC. 405. REPORT TO CONGRESS. 

16 Not later than 18 months after the commencement 

17 of any sale authorized pursuant to section 404, the Sec18 retary shall transmit to Congress a report— 

19 (1) describing the amounts and types of petro20 leum sold and refined petroleum product acquired 

21 under section 404; 

22 (2) describing the actions taken for the storage 

23 of refined petroleum product acquired under section 

24 404, and identifying any requirements for additional 

25 facilities; 


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1 (3) describing efforts the Department of En2 ergy has taken to ensure that distributors and im3 porters are not discouraged from maintaining and 

4 increasing supplies of refined petroleum products; 

5 (4) describing actions that the Department of 

6 Energy has taken and plans to take to ensure qual7 ity of refined petroleum product in the Reserve, in8 cluding the rotation of product stored; and 

9 (5) analyzing the effects that activities under 

10 section 404 have had on oil markets. 

11 SEC. 406. STRATEGIC PETROLEUM RESERVE DRAWDOWN 

12 AND EXCHANGE IN PUBLIC INTEREST. 

13 Section 161 of the Energy Policy and Conservation 

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

15 the following new subsection: 

16 ‘‘(k) PUBLIC INTEREST.— 

17 ‘‘(1) GENERAL AUTHORITY.—If, after consulta18 tion with the Secretary of Energy, the Secretary of 

19 Defense, and the Chairman of the Federal Trade 

20 Commission, the President finds that a cir21 cumstance, other than those described in subsections 

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

23 and scope that action under this subsection would be 

24 warranted to address market manipulation or other25 wise be in the public interest, then the President 


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1 may instruct the Secretary to drawdown and sell or 

2 exchange petroleum product from the Reserve under 

3 this subsection. 

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

5 the Reserve may not be drawn down or exchanged 

6 under this subsection— 

7 ‘‘(A) in excess of an aggregate of 

8 30,000,000 barrels with respect to each cir9 cumstance warranting a finding under para10 graph (1); or 

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

12 aggregate level of petroleum product in the Re13 serve to less than 600,000,000 barrels of petro14 leum product. 

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

16 any month during which there is a drawdown and 

17 sale of petroleum products from the Reserve under 

18 this subsection, the Secretary shall transmit a report 

19 to the Congress containing an account of the draw20 down and sale, along with an assessment of the ef21 fects of the drawdown and sale. 

22 ‘‘(4) REPLENISHMENT.—In the case of a draw23 down and sale or exchange under this subsection, 

24 the Secretary shall provide for the timely replenishVerDate Mar 15 2010 16:50 May 09, 2011 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1748.IH H1748

srobinson on DSKHWCL6B1PROD with BILLS
25 

•HR 1748 IH

1 ment of the Reserve in accordance with the objec2 tives and procedures set forth in section 160.’’. 

Æ 


srobinson on DSKHWCL6B1PROD with BILLS