I 

108TH CONGRESS 

2D SESSION H. R. 5405 

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 HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2004 

Mr. LARSON of Connecticut introduced the following bill; which was referred 

to the Committee on Energy and Commerce 

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, 

3 SECTION 1. SHORT TITLE. 

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

5 Act’’. 
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1 SEC. 2. FINDINGS. 

2 Congress finds that— 

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

4 crude oil would negatively affect the overall economic 

5 well-being of the United States; 

6 (2) the United States currently imports roughly 

7 55 percent of its oil; 

8 (3) heating oil price increases disproportionately 

9 harm the poor and the elderly; and 

10 (4) the global oil market is often greatly influ11 enced by nonmarket-based supply manipulations, in12 cluding price fixing and production quotas. 

13 SEC. 3. DRAWDOWN OF STRATEGIC PETROLEUM RESERVE. 

14 Section 161(d) of the Energy Policy and Conserva15 tion Act (42 U.S.C. 6241(d)) is amended by adding at 

16 the end the following: 

17 ‘‘(3) REDUCTION IN SUPPLY CAUSED BY ANTI18 COMPETITIVE CONDUCT.— 

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

20 section, in addition to the circumstances set forth in 

21 section 3(8) and in paragraph (2) of this subsection, 

22 a severe energy supply interruption shall be deemed 

23 to exist if the President determines that— 

24 ‘‘(i) there is a significant reduction in sup25 ply that— 
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1 ‘‘(I) is of significant scope and dura2 tion; and 

3 ‘‘(II) has caused a significant increase 

4 in the price of petroleum products; 

5 ‘‘(ii) the increase in price is likely to cause 

6 a significant adverse impact on the national 

7 economy; and 

8 ‘‘(iii) a substantial cause of the reduction 

9 in supply is the anticompetitive conduct of 1 or 

10 more foreign countries or international entities. 

11 ‘‘(B) DEPOSIT AND USE OF PROCEEDS.—Pro12 ceeds from the sale of petroleum drawn down pursu13 ant to a Presidential determination under subpara14 graph (A) shall— 

15 ‘‘(i) be deposited in the SPR Petroleum 

16 Account; and 

17 ‘‘(ii) be used only for the purposes speci18 fied in section 167.’’. 

19 SEC. 4. REPORTING AND CONSULTATION REQUIREMENTS. 

20 If the price of a barrel of crude oil exceeds $35 (in 

21 constant 2003 United States dollars) for a period greater 

22 than 14 days, the President, through the Secretary of En23 ergy, shall, not later than 30 days after the end of the 

24 14-day period, submit to the Committee on Energy and 

25 Natural Resources of the Senate and the Committee on 
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1 Energy and Commerce of the House of Representatives 

2 a report that— 

3 (1) states the results of a comprehensive review 

4 of the causes and potential consequences of the price 

5 increase; 

6 (2) provides an estimate of the likely duration 

7 of the price increase, based on analyses and fore8 casts of the Energy Information Administration; 

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

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

11 (4) states whether, and provides a specific ra12 tionale for why, the President does or does not sup13 port the drawdown and distribution of a specified 

14 amount of oil from the Strategic Petroleum Reserve. 

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