Strategic Petroleum Reserve Reform Act
This bill revises requirements for the Strategic Petroleum Reserve to address underutilized storage facilities.
Specifically, the bill authorizes the Department of Energy (DOE) to lease such storage facilities to private entities. Currently, DOE may only lease these storage facilities to foreign governments. DOE must ensure that leasing of facilities to foreign governments will not impair national security.
In addition, DOE must conduct a pilot program to lease storage capacity for up to 200 million barrels of petroleum products.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7019 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7019
To authorize the Secretary of Energy to carry out a program to lease
underutilized Strategic Petroleum Reserve facilities, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2020
Mr. Scalise (for himself and Mr. Cuellar) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To authorize the Secretary of Energy to carry out a program to lease
underutilized Strategic Petroleum Reserve facilities, 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. SHORT TITLE.
This Act may be cited as the ``Strategic Petroleum Reserve Reform
Act''.
SEC. 2. USE OF UNDERUTILIZED STRATEGIC PETROLEUM RESERVE FACILITIES.
Section 168 of the Energy Policy and Conservation Act (42 U.S.C.
6247a) is amended to read as follows:
``SEC. 168. USE OF UNDERUTILIZED FACILITIES.
``(a) Authority.--Notwithstanding any other provision of this
title, the Secretary may establish and carry out a program to make
available, by lease or otherwise, underutilized Strategic Petroleum
Reserve storage facilities and related facilities to the private
sector, or a foreign government or its representative, for any term and
under such other conditions as the Secretary considers necessary or
appropriate. Petroleum products stored under this section are not part
of the Strategic Petroleum Reserve.
``(b) Protection of Facilities.--Any lease entered into under the
program established under subsection (a) shall contain provisions
providing for fees to fully compensate the United States for all
related costs of storage and removals of petroleum products (including
the proportionate cost of replacement facilities necessitated as a
result of any withdrawals) incurred by the United States as a result of
such lease.
``(c) Access by the United States.--The Secretary shall ensure that
leasing of facilities under the program established under subsection
(a) does not impair the ability of the United States to withdraw,
distribute, or sell petroleum products from the Strategic Petroleum
Reserve in response to an energy emergency or to the obligations of the
United States under the Agreement on an International Energy Program.
``(d) National Security.--The Secretary shall ensure that leasing
of facilities under the program established under subsection (a) to a
foreign government or its representative will not impair national
security.
``(e) Deposits of Amounts Received.--
``(1) In general.--Except as provided in paragraph (2),
amounts received through the leasing of facilities under the
program established under subsection (a) shall be deposited in
the general fund of the Treasury during the fiscal year in
which such amounts are received.
``(2) Costs.--The Secretary may use for costs described in
subsection (b) (other than costs described in subsection (f)),
without further appropriation, amounts received through the
leasing of facilities under the program established under
subsection (a).
``(f) Preparation of Facilities.--The Secretary shall only use
amounts available in the Energy Security and Infrastructure
Modernization Fund established by section 404 of the Bipartisan Budget
Act of 2015 for costs described in subsection (b) of this section that
relate to addition of facilities or changes to facilities or facility
operations necessary to lease such facilities, including costs related
to acquisition of land, acquisition of ancillary facilities and
equipment, and site development, and other necessary costs related to
capital improvement.''.
SEC. 3. PILOT PROGRAM TO LEASE STRATEGIC PETROLEUM RESERVE FACILITIES.
(a) In General.--Part B of title I of the Energy Policy and
Conservation Act (42 U.S.C. 6231 et seq.) is amended by adding at the
end the following:
``SEC. 170. PILOT PROGRAM TO LEASE STORAGE AND RELATED FACILITIES.
``(a) Establishment.--In carrying out section 168 and not later
than 180 days after the date of enactment of the Strategic Petroleum
Reserve Reform Act, the Secretary shall establish and carry out a pilot
program to make available for lease--
``(1) capacity for storage of up to 200,000,000 barrels of
petroleum products at Strategic Petroleum Reserve storage
facilities; and
``(2) related facilities.
``(b) Contents.--In carrying out the pilot program established
under subsection (a), the Secretary shall--
``(1) identify appropriate Strategic Petroleum Reserve
storage facilities and related facilities to lease, in order to
make maximum use of such facilities;
``(2) identify and implement any changes to facilities or
facility operations necessary to so lease such facilities,
including any such changes necessary to ensure the long-term
structural viability and use of the facilities for purposes of
this part and part C;
``(3) make such facilities available for lease; and
``(4) identify environmental effects, including benefits,
of leasing storage facilities and related facilities.
``(c) Report.--Not later than 1 year after the date of enactment of
the Strategic Petroleum Reserve Reform Act, the Secretary shall submit
to Congress a report on the status of the pilot program established
under subsection (a).''.
(b) Conforming Amendment.--The table of contents for the Energy
Policy and Conservation Act is amended by adding after the item
relating to section 169 the following:
``Sec. 170. Pilot program to lease storage and related facilities.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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