Emergency Preparedness Act of 1981

Emergency Preparedness Act of 1981 - Title I: Standby Revenue Recycling Authority - Directs the President to submit to Congress a proposed standby plan which, when implemented, will permit the President to recycle Federal tax revenues both to State Governors for further distribution and to residents of the United States.

Requires the proposed standby plan to provide for, among other things: (1) mitigation of extreme personal hardship caused by severe petroleum supply disruption; (2) national defense; (3) assurances that each U.S. resident is eligible for assistance; and (4) giving the highest priority to the enforcement of antitrust statutes that will guard against anticompetitiveness during severe petroleum supply disruptions. Provides that the recycling plan shall use a combination of emergency distribution of funds to State Governors, emergency charges in withholding rates, reductions in payroll taxes, additions to social security and income payments, or other distribution mechanisms.

Requires the proposed plan to include adjustments and simplifications to the crude oil windfall profit tax that would eliminate the tax on oil discovered during and after a severe supply disruption and that would increase the tax rate on the incremental revenues resulting from the supply disruption.

Prohibits the implementation of a proposed standby plan unless each House of Congress passes a resolution approving the plan within 60 days of receiving the plan.

Authorizes the President to implement the plan whenever the President determines that a severe petroleum supply disruption exists and only with the passage of a joint resolution authorizing a specific amount of Federal tax revenues to be recycled.

Authorizes the President to reimburse any State for expenses incurred in preparation for or execution of responsibilities delegated to such State.

Title II: Use of the Strategic Petroleum Reserve - Requires the President to: (1) submit to Congress a report describing the advisability of competitive sales from the Strategic Petroleum Reserve to ensure emergency access to crude oil for particularly affected refiners in lieu of a standby crude oil allocation program; and (2) submit an amendment to the Strategic Petroleum Reserve plan that incorporates procedures recommended by the study.

Title III: Investigations and Reports - Directs the President to submit a report on the advisability and alternative means of: (1) reducing the tax liability of persons who draw down oil reserves during oil supply disruptions; and (2) providing tax or other incentives for the construction of private-sector oil storage facilities and the maintenance of increased private-sector oil reserves.

Directs the President to submit a report on the manner in which oil stockpile and demand restraint measures have been and may be coordinated among some or all allies and trading partners.