Emergency Preparedness Act of 1985

Emergency Preparedness Act of 1985 - Title I: Strategic Petroleum Reserve - Amends the Energy Policy and Conservation Act to authorize the Secretary of Energy (the Secretary) to conduct a test sale of at least one million but not more than five million barrels of Strategic Petroleum Reserve petroleum products. Requires such test sale to comply with the Strategic Petroleum Distribution Plan. Requires the sales prices of all petroleum products sold during any test sale to be at a minimum of: (1) a price not less than that which the Secretary determines appropriate under the test sale circumstances; or (2) not less than 80 percent of the price estimated by the Secretary for comparable petroleum products being sold in the same areas at the same time.

Reduces the minimum required fill rate for any fiscal year in which a test sale is conducted by the amount for any oil withdrawn under the test sale from the Strategic Petroleum Reserve. Increases the minimum fill rate for the next fiscal year by the same amount.

Authorizes the curtailment or suspension of new petroleum products purchase contracts and of the injection of petroleum products into the Strategic Petroleum Reserve if the President finds that a severe energy supply interruption appears imminent and that, as a result, the world price of crude oil has egun to increase. Authorizes the Secretary to sell petroleum products produced for storage but not injected into the Strategic Petroleum Reserve when the President declares that a severe energy supply interruption is in effect.

Authorizes the President to establish by rule programs which provide in advance of an oil supply disruption for the sale of oil from the Strategic Petroleum Reserve. Permits only the sale of such volumes of Strategic Reproleum Reserve oil as the President determines is consistent with national security interest and international obligations. Prohibits the sale of more than 30 percent of the total oil volume in the Strategic Petroleum Reserve at the time of sale.

Title II: Emergency Financial Response - Directs the President to provide emergency financial assistance in the form of standby block grants to State Governors in case of a petroleum disruption. Sets forth guidelines for study assistance.

Requires the President to transmit any determination to implement the standby block grant program to the Congress, along with a request for an emergency supplemental appropraition.

Directs the President to recommend to the Congress within 90 days of enactment of this Act any legislative changes which would provide for: (1) direct Federal assistance to complement the standby block grant plan established by this Act; and (2) changes in existing Federal direct assistance programs.

Authorizes appropriations.