II

106TH CONGRESS

1ST SESSION S. 1951

To provide the Secretary of Energy with authority to draw down the Strategic

Petroleum Reserve when oil and gas prices in the United States rise

sharply because of anticompetitive activity, and to require the President,

through the Secretary of Energy, to consult with Congress regarding

the sale of oil from the Strategic Petroleum Reserve.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 17, 1999

Mr. SCHUMER (for himself and Ms. COLLINS) introduced the following bill;

which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To provide the Secretary of Energy with authority to draw

down the Strategic Petroleum Reserve when oil and gas

prices in the United States rise sharply because of anticompetitive activity, and to require the President,

through the Secretary of Energy, to consult with Congress regarding the sale of oil from the Strategic Petroleum Reserve.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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•S 1951 IS

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Oil Price Safeguard

3 Act’’.

4 SEC. 2. FINDINGS.

5 Congress finds that—

6 (1) a sharp, sustained increase in the price of

7 crude oil would negatively affect the overall economic

8 well-being of the United States;

9 (2) the United States currently imports roughly

10 55 percent of its oil;

11 (3) heating oil price increases disproportionately

12 harm the poor and the elderly; and

13 (4) the global oil market is often greatly influ14 enced by nonmarket-based supply manipulations, in15 cluding price fixing and production quotas.

16 SEC. 3. DRAWDOWN OF STRATEGIC PETROLEUM RESERVE.

17 Section 161(d) of the Energy Policy and Conserva18 tion Act (42 U.S.C. 6241(d)) is amended by adding at

19 the end the following:

20 ‘‘(3) REDUCTION IN SUPPLY CAUSED BY ANTI21 COMPETITIVE CONDUCT.—

22 ‘‘(A) IN GENERAL.—For the purposes of

23 this section, in addition to the circumstances

24 set forth in section 3(8) and in paragraph (2)

25 of this subsection, a severe energy supply inter-
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1 ruption shall be deemed to exist if the President

2 determines that—

3 ‘‘(i) there is a significant reduction in

4 supply that—

5 ‘‘(I) is of significant scope and

6 duration; and

7 ‘‘(II) has caused a significant in8 crease in the price of petroleum prod9 ucts;

10 ‘‘(ii) the increase in price is likely to

11 cause a significant adverse impact on the

12 national economy; and

13 ‘‘(iii) a substantial cause of the reduc14 tion in supply is the anticompetitive con15 duct of 1 or more foreign countries or

16 international entities.

17 ‘‘(B) DEPOSIT AND USE OF PROCEEDS.—

18 Proceeds from the sale of petroleum drawn

19 down pursuant to a Presidential determination

20 under subparagraph (A) shall—

21 ‘‘(i) be deposited in the SPR Petro22 leum Account; and

23 ‘‘(ii) be used only for the purposes

24 specified in section 167.’’.
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1 SEC. 4. REPORTING AND CONSULTATION REQUIREMENTS.

2 If the price of a barrel of crude oil exceeds $25 (in

3 constant 1999 United States dollars) for a period greater

4 than 14 days, the President, through the Secretary of En5 ergy, shall, not later than 30 days after the end of the

6 14-day period, submit to the Committee on Energy and

7 Natural Resources of the Senate and the Committee on

8 Commerce of the House of Representatives a report

9 that—

10 (1) states the results of a comprehensive review

11 of the causes and potential consequences of the price

12 increase;

13 (2) provides an estimate of the likely duration

14 of the price increase, based on analyses and fore15 casts of the Energy Information Administration;

16 (3) provides an analysis of the effects of the

17 price increase on the cost of home heating oil; and

18 (4) states whether, and provides a specific ra19 tionale for why, the President does or does not sup20 port the drawdown and distribution of a specified

21 amount of oil from the Strategic Petroleum Reserve.

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