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106TH CONGRESS

2D SESSION S. 2047

To direct the Secretary of Energy to create a Heating Oil Reserve to be

available for use when fuel oil prices in the United States rise sharply

because of anticompetitive activity, during a fuel oil shortage, or during

periods of extreme winter weather.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 9, 2000

Mr. DODD (for himself, Mr. LIEBERMAN, Ms. SNOWE, Mr. JEFFORDS, Mr.

LAUTENBERG, Mr. REED, and Mr. LEAHY) introduced the following bill;

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

A BILL

To direct the Secretary of Energy to create a Heating Oil

Reserve to be available for use when fuel oil prices in

the United States rise sharply because of anticompetitive

activity, during a fuel oil shortage, or during periods

of extreme winter weather.

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 ‘‘Home Heating Oil

5 Price Stability Act’’.
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1 SEC. 2. FINDINGS.

2 Congress finds that—

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

4 fuel oil would negatively affect the overall economic

5 well-being of the United States, and such increases

6 have occurred in the winters of 1983–84, 1988–89,

7 1996–97, and 1999–2000;

8 (2) the United States currently imports roughly

9 55 percent of its oil;

10 (3) heating oil price increases disproportionately

11 harm the poor and the elderly;

12 (4) the global oil market is often greatly influ13 enced by nonmarket-based supply manipulations, in14 cluding price fixing and production quotas; and

15 (5) according to the June 1998 Department of

16 Energy ‘‘Report to Congress on the Feasibility of

17 Establishing a Heating Oil Component to the Stra18 tegic Petroleum Reserve’’—

19 (A) the use of a Government-owned dis20 tillate reserve in the Northeast would provide

21 benefits to consumers in the Northeast and to

22 the Nation;

23 (B) the Government would make a profit

24 of $46,000,000 from drawing down and selling

25 the distillate;
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1 (C) consumer savings, including reductions

2 in jet fuel, would total $425,000,000;

3 (D) there are a number of commercial pe4 troleum storage facilities with available capacity

5 for leasing in the New York/New Jersey area;

6 and

7 (E) it would be cost-effective to keep a

8 Government stockpile of approximately

9 2,000,000 barrels in leased storage in the

10 Northeast, filled by trading some crude oil from

11 the Government’s strategic reserve of oil for the

12 refined product.

13 SEC. 3. AUTHORIZATION OF HEATING OIL RESERVE.

14 (a) CREATION OF RESERVE.—The Secretary of En15 ergy shall immediately create a heating oil reserve con16 sisting of—

17 (1) 2,000,000 barrels of heating oil in leased

18 storage facilities in the New York Harbor area; and

19 (2) 4,700,000 barrels of heating oil in 1 of the

20 4 Strategic Petroleum Reserve caverns on the coast

21 of the Gulf of Mexico.

22 (b) EXCHANGE FOR CRUDE OIL.—The Secretary of

23 Energy may acquire heating oil for the reserve by trading

24 crude oil from the Strategic Petroleum Reserve for heating

25 oil.
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1 SEC. 4. DRAWDOWN OF HEATING OIL RESERVE.

2 The President may immediately draw down the Heat3 ing Oil Reserve—

4 (1) when fuel oil prices in the United States

5 rise sharply because of anticompetitive activity;

6 (2) during a fuel oil shortage; or

7 (3) during a period of extreme winter weather.

8 SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

9 There is authorized to be appropriated to the Sec10 retary of Energy to carry out this Act $125,000,000 for

11 the period of fiscal years 2000 through 2019.

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