A bill to amend the Energy Policy and Conservation Act to require the Secretary of Energy to stipulate, as a condition on the sale at auction of any petroleum products from the Strategic Petroleum Reserve, that the petroleum products not be exported to certain countries, to prohibit such sales to certain state-owned entities, and for other purposes.
Bill: S.4651 | Sponsor: Sen. Barrasso, John (R-WY)
Policy area: Energy

Summary:
This bill limits the sale and exportation of petroleum products (e.g., crude oil) from the Strategic Petroleum Reserve (SPR). Specifically, the bill directs the Department of Energy (DOE) to require, as a condition of auction sales, that the petroleum products not be exported to countries that are designated as countries of particular concern for religious freedom under the International Religious Freedom Act of 1998.
In addition, the bill establishes limits on auction sales of petroleum products from the SPR to state-owned entities if DOE determines that, as of the dates of the auctions, there are bans on, or the imposition of sanctions by the United States with respect to, the purchase of crude oil from countries. Under such circumstances, state-owned entities must certify that they have not purchased petroleum products from countries subject to such bans or sanctions while the bans or sanctions were in effect in order to be able to bid in auctions. If DOE determines state-owned entities participating in the auctions have purchased crude oil from such countries while the bans or sanctions were in effect, then DOE may not sell petroleum products from the SPR to such entities.

To amend the Energy Policy and Conservation Act to require the 
Secretary of Energy to stipulate, as a condition on the sale at auction 
 of any petroleum products from the Strategic Petroleum Reserve, that 
    the petroleum products not be exported to certain countries, to 
  prohibit such sales to certain state-owned entities, and for other 
                               purposes.

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

SECTION 1. PROHIBITION ON EXPORT OF STRATEGIC PETROLEUM RESERVE 
              PETROLEUM PRODUCTS TO CERTAIN COUNTRIES AND SALES TO 
              CERTAIN STATE-OWNED ENTITIES.

    Section 161(i) of the Energy Policy and Conservation Act (42 U.S.C. 
6241(i)) is amended--
            (1) by striking ``(i) Notwithstanding any other law'' and 
        inserting the following:
    ``(i) Refine or Exchange Outside the United States.--
            ``(1) In general.--Notwithstanding any other provision of 
        law and subject to paragraphs (2) and (3)''; and
            (2) by adding at the end the following:
            ``(2) Prohibition on export of strategic petroleum reserve 
        petroleum products to certain countries.--Notwithstanding any 
        other provision of law, with respect to the drawdown and sale 
        at auction of any petroleum products from the Reserve under 
        this section after the date of enactment of this paragraph, the 
        Secretary shall require, as a condition of the sale, that the 
        petroleum products not be exported to a country that is 
        designated as a country of particular concern for religious 
        freedom under clause (ii) of section 402(b)(1)(A) of the 
        International Religious Freedom Act of 1998 (22 U.S.C. 
        6442(b)(1)(A)).
            ``(3) Requirements applicable to certain state-owned 
        entities.--Notwithstanding any other provision of law, with 
        respect to the drawdown and sale at auction of any petroleum 
        products from the Reserve under this section after the date of 
        enactment of this paragraph, if the Secretary determines that, 
        as of the date of the auction, there is in effect a United 
        States ban on, or the imposition of sanctions by the United 
        States with respect to, the purchase of crude oil from 1 or 
        more countries--
                    ``(A) to be eligible to bid in the auction, a 
                state-owned entity shall submit to the Secretary a 
                certification that the state-owned entity has not 
                purchased petroleum products from any country subject 
                to such a ban or sanctions during the period in which 
                the ban or sanctions were in effect; and
                    ``(B) if the Secretary determines that a state-
                owned entity participating in the auction has purchased 
                crude oil from a country subject to such a ban or 
                sanctions during the period in which the ban or 
                sanctions were in effect, the Secretary shall not sell 
                petroleum products from the Reserve to the state-owned 
                entity under the auction.''.
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