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H.R. 6511: Strategic Petroleum Reserve Reform Act

The text of the bill below is as of Jul 25, 2018 (Introduced).


I

115th CONGRESS

2d Session

H. R. 6511

IN THE HOUSE OF REPRESENTATIVES

July 25, 2018

(for himself and Mr. Rush) 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.

1.

Short title

This Act may be cited as the Strategic Petroleum Reserve Reform Act.

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:

168.

Use of underutilized facilities

(a)

Authority

Notwithstanding any other provision of this title, the Secretary may establish and carry out a program to lease underutilized Strategic Petroleum Reserve storage facilities and related facilities to the private sector, or a foreign government or its representative. 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), without further appropriation, amounts received through the leasing of facilities under the program established under subsection (a).

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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:

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.

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