USC Subchapter I

USC Subchapter I
in effect

42 U.S.C. § 6212a Oil exports, safety valve, and maritime security

(a) Omitted (b) National policy on oil export restrictionNotwithstanding any other provision of law, except as provided in subsections (c) and (d), to promote the efficient exploration, production, storage, supply, marketing, pricing, and regulation of energy resources, including fossil fuels, no official of the Federal Government shall impose or enforce any restriction on the export of crude oil. (c) Savings clauseNothing in this section limits the authority of the President under the Constitution, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) or regulations issued under that Act (other than section 754.2 of title 15, Code of Federal Regulations), the National Emergencies Act (50 U.S.C. 1601 et seq.), part B of title II of the Energy Policy and Conservation Act (42 U.S.C. 6271 et seq.), the Trading With the Enemy Act (50 U.S.C. App. 1 et seq.),11 See References in Text note below. or any other provision of law that imposes sanctions on a foreign person or foreign government (including any provision of law that prohibits or restricts United States persons from engaging in a transaction with a sanctioned person or government), including a foreign government that is designated as a state sponsor of terrorism, to prohibit exports. (d) Exceptions and presidential authority(1) In generalThe President may impose export licensing requirements or other restrictions on the export of crude oil from the United States for a period of not more than 1 year, if—(A) the President declares a national emergency and formally notices the declaration of a national emergency in the Federal Register; (B) the export licensing requirements or other restrictions on the export of crude oil from the United States under this subsection apply to 1 or more countries, persons, or organizations in the context of sanctions or trade restrictions imposed by the United States for reasons of national security by the Executive authority of the President or by Congress; or (C) the Secretary of Commerce, in consultation with the Secretary of Energy, finds and reports to the President that—(i) the export of crude oil pursuant to this Act has caused sustained material oil supply shortages or sustained oil prices significantly above world market levels that are directly attributable to the export of crude oil produced in the United States; and (ii) those supply shortages or price increases have caused or are likely to cause sustained material adverse employment effects in the United States. (2) RenewalAny requirement or restriction imposed pursuant to subparagraph (A) of paragraph (1) may be renewed for 1 or more additional periods of not more than 1 year each.

42 U.S.C. § 6213 Certain lease bidding arrangements prohibited

(a) Promulgation of rule by Secretary of the InteriorThe Secretary of the Interior shall, not later than 30 days after December 22, 1975, prescribe and make effective a rule which prohibits the bidding for any right to develop crude oil, natural gas, and natural gas liquids on any lands located on the Outer Continental Shelf by any person if more than one major oil company, more than one affiliate of a major oil company, or a major oil company and any affiliate of a major oil company, has or have a significant ownership interest in such person. Such rule shall define affiliate relationships and significant ownership interests. (b) DefinitionsAs used in this section:(1) The term “major oil company” means any person who, individually or together with any other person with respect to which such person has an affiliate relationship or significant ownership interest, produced during a prior 6–month period specified by the Secretary, an average daily volume of 1,600,000 barrels of crude oil, natural gas liquids equivalents, and natural gas equivalents. (2) One barrel of natural gas equivalent equals 5,626 cubic feet of natural gas measured at 14.73 pounds per square inch (MSL) and 60 degrees Fahrenheit. (3) One barrel of natural gas liquids equivalent equals 1.454 barrels of natural gas liquids at 60 degrees Fahrenheit. (c) ExemptionsThe Secretary may, in his discretion, consider a request from any person described in subsection (a) of this section for an exemption from the prohibition of this section. In considering any such request, the Secretary may exempt bidding for leases for lands in any area only if the Secretary finds, on the record after opportunity for an agency hearing, that—(1) such lands have extremely high cost exploration or development problems; and (2) exploration and development will not occur on such lands unless such exemption is granted. Findings of the Secretary under this subsection shall be final, and shall not be invalidated unless found to be arbitrary or capricious. (d) Unitization of producing fieldsThis section shall not be construed to prohibit the unitization of producing fields to increase production or maximize ultimate recovery of oil or natural gas, or both. (e) Report to Congress covering extension of restrictions on joint biddingThe Secretary shall study and report to the Congress, not later than 6 months after December 22, 1975, with respect to the feasibility and desirability of extending the prohibition on joint bidding to—(1) bidding for any right to develop crude oil, natural gas, and natural gas liquids on Federal lands other than those located on the Outer Continental Shelf; and (2) bidding for any right to develop coal and oil shale on such lands.

42 U.S.C. § 6215 Major fuel burning stationary source

(a) Restrictions on issuance of orders or rules by Governor pursuant to section 7425 of this titleNo Governor of a State may issue any order or rule pursuant to section 7425 of this title to any major fuel burning stationary source (or class or category thereof)—(1) prohibiting such source from using fuels other than locally or regionally available coal or coal derivatives, or (2) requiring such source to enter into a contract (or contracts) for supplies of locally or regionally available coal or coal derivatives. (b) Petition to President(1) The Governor of any State may petition the President to exercise the President’s authorities pursuant to section 7425 of this title with respect to any major fuel burning stationary source located in such State. (2) Any petition under paragraph (1) shall include documentation which could support a finding that significant local or regional economic disruption or unemployment would result from use by such source of—(A) coal or coal derivatives other than locally or regionally available coal, (B) petroleum products, (C) natural gas, or (D) any combination of fuels referred to in subparagraphs (A) through (C), to comply with the requirements of a State implementation plan pursuant to section 7410 of this title. (c) Action to be taken by PresidentWithin 90 days after the submission of a Governor’s petition under subsection (b), the President shall either issue an order or rule pursuant to section 7425 of this title or deny such petition, stating in writing his reasons for such denial. In making his determination to issue such an order or rule pursuant to this subsection, the President must find that such order or rule would—(1) be consistent with section 7425 of this title; (2) result in no significant increase in the consumption of energy; (3) not subject the ultimate consumer to significantly higher energy costs; and (4) not violate any contractual relationship between such source and any supplier or transporter of fuel to such source. (d) Effect on authority of President to allocate coal or coal derivativesNothing in subsection (a) or (b) of this section shall affect the authority of the President or the Secretary of the Department of Energy to allocate coal or coal derivatives under any provision of law. (e) DefinitionsThe terms “major fuel burning stationary source (or class or category thereof)” and “locally or regionally available coal or coal derivatives” shall have the meanings assigned to them for the purposes of section 7425 of this title.

42 U.S.C. § 6216 Annual Home Heating Readiness Reports

(a) In generalOn or before September 1 of each year, the Secretary, acting through the Administrator of the Energy Information Agency, shall submit to Congress a Home Heating Readiness Report on the readiness of the natural gas, heating oil and propane industries to supply fuel under various weather conditions, including rapid decreases in temperature. (b) ContentsThe Home Heating Readiness Report shall include—(1) estimates of the consumption, expenditures, and average price per gallon of heating oil and propane and thousand cubic feet of natural gas for the upcoming period of October through March for various weather conditions, with special attention to extreme weather, and various regions of the country; (2) an evaluation of—(A) global and regional crude oil and refined product supplies; (B) the adequacy and utilization of refinery capacity; (C) the adequacy, utilization, and distribution of regional refined product storage capacity; (D) weather conditions; (E) the refined product transportation system; (F) market inefficiencies; and (G) any other factor affecting the functional capability of the heating oil industry and propane industry that has the potential to affect national or regional supplies and prices; (3) recommendations on steps that the Federal, State, and local governments can take to prevent or alleviate the impact of sharp and sustained increases in the price of natural gas, heating oil, and propane; and (4) recommendations on steps that companies engaged in the production, refining, storage, transportation of heating oil or propane, or any other activity related to the heating oil industry or propane industry, can take to prevent or alleviate the impact of sharp and sustained increases in the price of heating oil and propane. (c) Information requestsThe Secretary may request information necessary to prepare the Home Heating Readiness Report from companies described in subsection (b)(4).

42 U.S.C. § 6217 Scientific inventory of oil and gas reserves

(a) In generalThe Secretary of the Interior, in consultation with the Secretaries of Agriculture and Energy, shall conduct an inventory of all onshore Federal lands. The inventory shall identify—(1) the United States Geological Survey estimates of the oil and gas resources underlying these lands; (2) the extent and nature of any restrictions or impediments to the development of the resources, including—(A) impediments to the timely granting of leases; (B) post-lease restrictions, impediments, or delays on development for conditions of approval, applications for permits to drill, or processing of environmental permits; and (C) permits or restrictions associated with transporting the resources for entry into commerce; and (3) the quantity of resources not produced or introduced into commerce because of the restrictions. (b) Regular updateOnce completed, the USGS resource estimates and the surface availability data as provided in subsection (a)(2) shall be regularly updated and made publicly available. (c) InventoryThe inventory shall be provided to the Committee on Resources of the House of Representatives and to the Committee on Energy and Natural Resources of the Senate within 2 years after November 9, 2000. (d) AssessmentsUsing the inventory, the Secretary of Energy shall make periodic assessments of economically recoverable resources accounting for a range of parameters such as current costs, commodity prices, technology, and regulations.

42 U.S.C. § 6231 Congressional finding and declaration of policy

(a) The Congress finds that the storage of substantial quantities of petroleum products will diminish the vulnerability of the United States to the effects of a severe energy supply interruption, and provide limited protection from the short-term consequences of interruptions in supplies of petroleum products. (b) It is the policy of the United States to provide for the creation of a Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products to reduce the impact of disruptions in supplies of petroleum products, to carry out obligations of the United States under the international energy program, and for other purposes as provided for in this chapter.

42 U.S.C. § 6232 Definitions

As used in this part and part C: (1) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029. (2) The term “importer” means any person who owns, at the first place of storage, any petroleum product imported into the United States. (3) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029. (4) The term “interest in land” means any ownership or possessory right with respect to real property, including ownership in fee, an easement, a leasehold, and any subsurface or mineral rights. (5) The term “readily available inventories” means stocks and supplies of petroleum products which can be distributed or used without affecting the ability of the importer or refiner to operate at normal capacity; such term does not include minimum working inventories or other unavailable stocks. (6) The term “refiner” means any person who owns, operates, or controls the operation of any refinery. (7) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029. (8) The term “related facility” means any necessary appurtenance to a storage facility, including pipelines, roadways, reservoirs, and salt brine lines. (9) The term “Reserve” means the Strategic Petroleum Reserve. (10) The term “storage facility” means any facility or geological formation which is capable of storing significant quantities of petroleum products. (11) The term “Strategic Petroleum Reserve” means petroleum products stored in storage facilities pursuant to this part.

42 U.S.C. § 6234 Strategic Petroleum Reserve

(a) EstablishmentA Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products shall be created pursuant to this part. (b) Authority of SecretaryThe Secretary, in accordance with this part, shall exercise authority over the development, operation, and maintenance of the Reserve. (c) to (e) Repealed. Pub. L. 106–469, title I, § 103(7)(C), Nov. 9, 2000, 114 Stat. 2030 (f) Purpose of drawdown and distribution; requests for funds for storage(1) The drawdown and distribution of petroleum products from the Strategic Petroleum Reserve is authorized only under section 6241 of this title, and drawdown and distribution of petroleum products for purposes other than those described in section 6241 of this title shall be prohibited. (2) In the Secretary’s annual budget submission, the Secretary shall request funds for acquisition, transportation, and injection of petroleum products for storage in the Reserve. If no requests for funds are made, the Secretary shall provide a written explanation of the reason therefore.

42 U.S.C. § 6239 Development, operation, and maintenance of the Reserve

(a) to (e) Repealed. Pub. L. 106–469, title I, § 103(13)(A), Nov. 9, 2000, 114 Stat. 2030 (f) Powers of Secretary to develop and operate the Strategic Petroleum ReserveIn order to develop, operate, or maintain the Strategic Petroleum Reserve, the Secretary may—(1) issue rules, regulations, or orders; (2) acquire by purchase, condemnation, or otherwise, land or interests in land for the location of storage and related facilities; (3) construct, purchase, lease, or otherwise acquire storage and related facilities; (4) use, lease, maintain, sell or otherwise dispose of land or interests in land, or of storage and related facilities acquired under this part, under such terms and conditions as the Secretary considers necessary or appropriate; (5) acquire, subject to the provisions of section 6240 of this title, by purchase, exchange, or otherwise, petroleum products for storage in the Strategic Petroleum Reserve; (6) store petroleum products in storage facilities owned and controlled by the United States or in storage facilities owned by others if those facilities are subject to audit by the United States; (7) execute any contracts necessary to develop, operate, or maintain the Strategic Petroleum Reserve; (8) bring an action, when the Secretary considers it necessary, in any court having jurisdiction over the proceedings, to acquire by condemnation any real or personal property, including facilities, temporary use of facilities, or other interests in land, together with any personal property located on or used with the land. (g) Acquisition of property by negotiation as prerequisite to condemnationBefore any condemnation proceedings are instituted, an effort shall be made to acquire the property involved by negotiation, unless, the effort to acquire such property by negotiation would, in the judgement of the Secretary be futile or so time-consuming as to unreasonably delay the development of the Strategic Petroleum Reserve, because of (1) reasonable doubt as to the identity of the owners, (2) the large number of persons with whom it would be necessary to negotiate, or (3) other reasons. (h), (i) Repealed. Pub. L. 106–469, title I, § 103(13)(D), Nov. 9, 2000, 114 Stat. 2031 (j) Expansion beyond 700,000,000 barrelsIf the Secretary determines expansion beyond 700,000,000 barrels of petroleum product inventory is appropriate, the Secretary shall submit a plan for expansion to the Congress. (k) Exemption from subtitle IV of title 49A storage or related facility of the Strategic Petroleum Reserve owned by or leased to the United States is not subject to the Interstate Commerce Act. (l) Rulemaking during drawdown and saleDuring a drawdown and sale of Strategic Petroleum Reserve petroleum products, the Secretary may issue implementing rules, regulations, or orders in accordance with section 553 of title 5, without regard to rulemaking requirements in section 6393 of this title, and section 7191 of this title.

42 U.S.C. § 6240 Petroleum products for storage, transport, or exchange

(a) Eligibility of petroleum productsThe Secretary may acquire, place in storage, transport, or exchange petroleum products acquired by purchase or exchange. (b) Objectives in determining manner of acquisitionThe Secretary shall, to the greatest extent practicable, acquire petroleum products for the Reserve in a manner consonant with the following objectives:(1) minimization of the cost of the Reserve; (2) Repealed. Pub. L. 106–469, title I, § 103(14)(C), Nov. 9, 2000, 114 Stat. 2031; (3) minimization of the Nation’s vulnerability to a severe energy supply interruption; (4) minimization of the impact of such acquisition upon supply levels and market forces; and (5) encouragement of competition in the petroleum industry. (c) ProceduresThe Secretary shall develop, with public notice and opportunity for comment, procedures consistent with the objectives of this section to acquire petroleum for the Reserve. Such procedures shall take into account the need to—(1) maximize overall domestic supply of crude oil (including quantities stored in private sector inventories); (2) avoid incurring excessive cost or appreciably affecting the price of petroleum products to consumers; (3) minimize the costs to the Department of the Interior and the Department of Energy in acquiring such petroleum products (including foregone revenues to the Treasury when petroleum products for the Reserve are obtained through the royalty-in-kind program); (4) protect national security; (5) avoid adversely affecting current and futures prices, supplies, and inventories of oil; and (6) address other factors that the Secretary determines to be appropriate. (d), (e) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031 (f) Predrawdown diversionIf the Secretary finds that a severe energy supply interruption may be imminent, the Secretary may suspend the acquisition of petroleum product for, and the injection of petroleum product into, the Reserve and may sell any petroleum product acquired for and in transit to, but not injected into, the Reserve. (g) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031 (h) Purchase from stripper well properties(1) If the President finds that declines in the production of oil from domestic resources pose a threat to national energy security, the President may direct the Secretary to acquire oil from domestic production of stripper well properties for storage in the Strategic Petroleum Reserve. Except as provided in paragraph (2), the Secretary may set such terms and conditions as he deems necessary for such acquisition. (2) Crude oil purchased by the Secretary pursuant to this subsection shall be by competitive bid. The price paid by the Secretary—(A) shall take into account the cost of production including costs of reservoir and well maintenance; and (B) shall not exceed the price that would have been paid if the Secretary had acquired petroleum products of a similar quality on the open market under competitive bid procedures without regard to the source of the petroleum products.

42 U.S.C. § 6241 Drawdown and sale of petroleum products

(a) Power of SecretaryThe Secretary may drawdown and sell petroleum products in the Reserve only in accordance with the provisions of this section. (b), (c) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031 (d) Presidential finding prerequisite to drawdown and sale(1) Drawdown and sale of petroleum products from the Strategic Petroleum Reserve may not be made unless the President has found drawdown and sale are required by a severe energy supply interruption or by obligations of the United States under the international energy program. (2) For purposes of this section, in addition to the circumstances set forth in section 6202(8) of this title, a severe energy supply interruption shall be deemed to exist if the President determines that—(A) an emergency situation exists and there is a significant reduction in supply which is of significant scope and duration; (B) a severe increase in the price of petroleum products has resulted from such emergency situation; and (C) such price increase is likely to cause a major adverse impact on the national economy. (e) Sales procedures(1) The Secretary shall sell petroleum products withdrawn from the Strategic Petroleum Reserve at public sale to the highest qualified bidder in the amounts, for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to Federal, State, or local regulations controlling sales of petroleum products. (2) The Secretary may cancel in whole or in part any offer to sell petroleum products as part of any drawdown and sale under this section. (f) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031 (g) Directive to carry out test drawdown and sale(1) The Secretary shall conduct a continuing evaluation of the drawdown and sales procedures. In the conduct of an evaluation, the Secretary is authorized to carry out a test drawdown and sale or exchange of petroleum products from the Reserve. Such a test drawdown and sale or exchange may not exceed 5,000,000 barrels of petroleum products. (2) Repealed. Pub. L. 106–469, title I, § 103(15)(F)(ii), Nov. 9, 2000, 114 Stat. 2031. (3) At least part of the crude oil that is sold or exchanged under this subsection shall be sold or exchanged to or with entities that are not part of the Federal Government. (4) The Secretary may not sell any crude oil under this subsection at a price less than that which the Secretary determines appropriate and, in no event, at a price less than 95 percent of the sales price, as estimated by the Secretary, of comparable crude oil being sold in the same area at the time the Secretary is offering crude oil for sale in such area under this subsection. (5) The Secretary may cancel any offer to sell or exchange crude oil as part of any test under this subsection if the Secretary determines that there are insufficient acceptable offers to obtain such crude oil. (6) In the case of a sale of any petroleum products under this subsection, the Secretary shall, to the extent funds are available in the SPR Petroleum Account as a result of such sale, acquire petroleum products for the Reserve within the 12-month period beginning after completion of the sale. (7) Rules, regulations, or orders issued in order to carry out this subsection which have the applicability and effect of a rule as defined in section 551(4) of title 5 shall not be subject to the requirements of subchapter II of chapter 5 of such title or to section 6393 of this title. (8) Notice to congress.—(A) Prior notice.—Not less than 14 days before the date on which a test is carried out under this subsection, the Secretary shall notify both Houses of Congress of the test. (B) Emergency.—The prior notice requirement in subparagraph (A) shall not apply if the Secretary determines that an emergency exists which requires a test to be carried out, in which case the Secretary shall notify both Houses of Congress of the test as soon as possible. (C) Detailed description.—(i) In general.—Not later than 180 days after the date on which a test is completed under this subsection, the Secretary shall submit to both Houses of Congress a detailed description of the test. (ii) Report.—A detailed description submitted under clause (i) may be included as part of a report made to the President and Congress under section 6245 of this title. (h) Prevention or reduction of adverse impact of severe domestic energy supply interruptions(1) If the President finds that—(A) a circumstance, other than those described in subsection (d), exists that constitutes, or is likely to become, a domestic or international energy supply shortage of significant scope or duration; (B) action taken under this subsection would assist directly and significantly in preventing or reducing the adverse impact of such shortage; (C) the Secretary has found that action taken under this subsection will not impair the ability of the United States to carry out obligations of the United States under the international energy program; and (D) the Secretary of Defense has found that action taken under this subsection will not impair national security, then the Secretary may, subject to the limitations of paragraph (2), draw down and sell petroleum products from the Strategic Petroleum Reserve. (2) Petroleum products from the Reserve may not be drawn down under this subsection—(A) in excess of an aggregate of 30,000,000 barrels with respect to each such shortage; (B) for more than 60 days with respect to each such shortage; (C) if there are fewer than 252,400,000 barrels of petroleum product stored in the Reserve; or (D) below the level of an aggregate of 252,400,000 barrels of petroleum product stored in the Reserve. (3) During any period in which there is a drawdown and sale of the Reserve in effect under this subsection, the Secretary shall transmit a monthly report to the Congress containing an account of the drawdown and sale of petroleum products under this subsection and an assessment of its effect. (4) In no case may the drawdown under this subsection be extended beyond 60 days with respect to any domestic energy supply shortage. (i) Exchange of withdrawn productsNotwithstanding any other law, the President may permit any petroleum products withdrawn from the Strategic Petroleum Reserve in accordance with this section to be sold and delivered for refining or exchange outside of the United States, in connection with an arrangement for the delivery of refined petroleum products to the United States. (j) Purchases from Strategic Petroleum Reserve by entities in insular areas of United States and Freely Associated States(1) DefinitionsIn this subsection:(A) Binding offerThe term “binding offer” means a bid submitted by the State of Hawaii for an assured award of a specific quantity of petroleum product, with a price to be calculated pursuant to paragraph (2) of this subsection, that obligates the offeror to take title to the petroleum product without further negotiation or recourse to withdraw the offer. (B) Category of petroleum productThe term “category of petroleum product” means a master line item within a notice of sale. (C) Eligible entityThe term “eligible entity” means an entity that owns or controls a refinery that is located within the State of Hawaii. (D) Full tanker loadThe term “full tanker load” means a tanker of approximately 700,000 barrels of capacity, or such lesser tanker capacity as may be designated by the State of Hawaii. (E) Insular areaThe term “insular area” means the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, the Freely Associated States of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. (F) OfferingThe term “offering” means a solicitation for bids for a quantity or quantities of petroleum product from the Strategic Petroleum Reserve as specified in the notice of sale. (G) Notice of saleThe term “notice of sale” means the document that announces—(i) the sale of Strategic Petroleum Reserve products; (ii) the quantity, characteristics, and location of the petroleum product being sold; (iii) the delivery period for the sale; and (iv) the procedures for submitting offers. (2) In generalIn the case of an offering of a quantity of petroleum product during a drawdown of the Strategic Petroleum Reserve—(A) the State of Hawaii, in addition to having the opportunity to submit a competitive bid, may—(i) submit a binding offer, and shall on submission of the offer, be entitled to purchase a category of a petroleum product specified in a notice of sale at a price equal to the volumetrically weighted average of the successful bids made for the remaining quantity of the petroleum product within the category that is the subject of the offering; and (ii) submit one or more alternative offers, for other categories of the petroleum product, that will be binding if no price competitive contract is awarded for the category of petroleum product on which a binding offer is submitted under clause (i); and (B) at the request of the Governor of the State of Hawaii, a petroleum product purchased by the State of Hawaii at a competitive sale or through a binding offer shall have first preference in scheduling for lifting. (3) Limitation on quantity(A) In generalIn administering this subsection, in the case of each offering, the Secretary may impose the limitation described in subparagraph (B) or (C) that results in the purchase of the lesser quantity of petroleum product. (B) Portion of quantity of previous importsThe Secretary may limit the quantity of a petroleum product that the State of Hawaii may purchase through a binding offer at any offering to 1/12 of the total quantity of imports of the petroleum product brought into the State during the previous year (or other period determined by the Secretary to be representative). (C) Percentage of offeringThe Secretary may limit the quantity that may be purchased through binding offers at any offering to 3 percent of the offering. (4) Adjustments(A) In generalNotwithstanding any limitation imposed under paragraph (3), in administering this subsection, in the case of each offering, the Secretary shall, at the request of the Governor of the State of Hawaii, or an eligible entity certified under paragraph (7), adjust the quantity to be sold to the State of Hawaii in accordance with this paragraph. (B) Upward adjustmentThe Secretary shall adjust upward to the next whole number increment of a full tanker load if the quantity to be sold is—(i) less than 1 full tanker load; or (ii) greater than or equal to 50 percent of a full tanker load more than a whole number increment of a full tanker load. (C) Downward adjustmentThe Secretary shall adjust downward to the next whole number increment of a full tanker load if the quantity to be sold is less than 50 percent of a full tanker load more than a whole number increment of a full tanker load. (5) Delivery to other locationsThe State of Hawaii may enter into an exchange or a processing agreement that requires delivery to other locations, if a petroleum product of similar value or quantity is delivered to the State of Hawaii. (6) Standard sales provisionsExcept as otherwise provided in this chapter, the Secretary may require the State of Hawaii to comply with the standard sales provisions applicable to purchasers of petroleum products at competitive sales. (7) Eligible entities(A) In generalSubject to subparagraphs (B) and (C) and notwithstanding any other provision of this paragraph, if the Governor of the State of Hawaii certifies to the Secretary that the State has entered into an agreement with an eligible entity to carry out this chapter, the eligible entity may act on behalf of the State of Hawaii to carry out this subsection. (B) LimitationThe Governor of the State of Hawaii shall not certify more than one eligible entity under this paragraph for each notice of sale. (C) Barred companyIf the Secretary has notified the Governor of the State of Hawaii that a company has been barred from bidding (either prior to, or at the time that a notice of sale is issued), the Governor shall not certify the company under this paragraph. (8) Supplies of petroleum productsAt the request of the Governor of an insular area, the Secretary shall, for a period not to exceed 180 days following a drawdown of the Strategic Petroleum Reserve, assist the insular area or the President of a Freely Associated State in its efforts to maintain adequate supplies of petroleum products from traditional and nontraditional suppliers.

42 U.S.C. § 6242 Coordination with import quota system

No quantitative restriction on the importation of any petroleum product into the United States imposed by law shall apply to volumes of any such petroleum product imported into the United States for storage in the Reserve.

42 U.S.C. § 6243 Records and accounts

(a) Preparation and maintenanceThe Secretary may require any person to prepare and maintain such records or accounts as the Secretary, by rule, determines necessary to carry out the purposes of this part. (b) Audit of operations of storage facilityThe Secretary may audit the operations of any storage facility in which any petroleum product is stored or required to be stored pursuant to the provisions of this part. (c) Access to and inspection of records or accounts and storage facilitiesThe Secretary may require access to, and the right to inspect and examine, at reasonable times, (1) any records or accounts required to be prepared or maintained pursuant to subsection (a) and (2) any storage facilities subject to audit by the United States under the authority of this part.

42 U.S.C. § 6245 Annual report

The Secretary shall report annually to the President and the Congress on actions taken to implement this part. This report shall include— (1) the status of the physical capacity of the Reserve and the type and quantity of petroleum products in the Reserve; (2) an estimate of the schedule and cost to complete planned equipment upgrade or capital investment in the Reserve, including upgrades and investments carried out as part of operational maintenance or extension of life activities; (3) an identification of any life-limiting conditions or operational problems at any Reserve facility, and proposed remedial actions including an estimate of the schedule and cost of implementing those remedial actions; (4) a description of current withdrawal and distribution rates and capabilities, and an identification of any operational or other limitations on those rates and capabilities; (5) a listing of petroleum product acquisitions made in the preceding year and planned in the following year, including quantity, price, and type of petroleum; (6) a summary of the actions taken to develop, operate, and maintain the Reserve; (7) a summary of the financial status and financial transactions of the Strategic Petroleum Reserve and Strategic Petroleum Reserve Petroleum Accounts for the year; (8) a summary of expenses for the year, and the number of Federal and contractor employees; (9) the status of contracts for development, operation, maintenance, distribution, and other activities related to the implementation of this part; (10) a summary of foreign oil storage agreements and their implementation status; (11) any recommendations for supplemental legislation or policy or operational changes the Secretary considers necessary or appropriate to implement this part.

42 U.S.C. § 6246 Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this part and part D, to remain available until expended.

42 U.S.C. § 6247 SPR Petroleum Account

(a) EstablishmentThe Secretary of the Treasury shall establish in the Treasury of the United States an account to be known as the “SPR Petroleum Account” (hereinafter in this section referred to as the “Account”). (b) Obligation of funds for acquisition, transportation, and injection of petroleum products into SPRAmounts in the Account may be obligated by the Secretary of Energy for the acquisition, transportation, and injection of petroleum products into the Strategic Petroleum Reserve, for test sales of petroleum products from the Reserve, and for the drawdown, sale, and delivery of petroleum products from the Reserve—(1) Repealed. Pub. L. 106–469, title I, § 103(19)(A)(ii), Nov. 9, 2000, 114 Stat. 2033; (2) in the case of any fiscal year, subject to section 7270 of this title, in such aggregate amounts as may be appropriated in advance in appropriation Acts; and (3) in the case of any fiscal year, notwithstanding section 7270 of this title, in an aggregate amount equal to the aggregate amount of the receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 6241 of this title, including a drawdown and distribution carried out under subsection (g) of such section, or from the sale of petroleum products under section 6240(f) of this title. Funds available to the Secretary of Energy for obligation under this subsection may remain available without fiscal year limitation. (c) Provision and deposit of fundsThe Secretary of the Treasury shall provide and deposit into the Account such sums as may be necessary to meet obligations of the Secretary of Energy under subsection (b). (d) Off-budgeting proceduresThe Account, the deposits and withdrawals from the Account, and the transactions, receipts, obligations, outlays associated with such deposits and withdrawals (including petroleum product purchases and related transactions), and receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 6241 of this title, including a drawdown and distribution carried out under subsection (g) of such section, and from the sale of petroleum products under section 6240(f) of this title—(1) shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States; and (2) shall not be deemed to be budget authority, spending authority, budget outlays, or Federal revenues for purposes of title III of Public Law 93–344, as amended [2 U.S.C. 631 et seq.].

42 U.S.C. § 6247a Use of underutilized facilities

(a) AuthorityNotwithstanding any other provision of this subchapter, the Secretary, by lease or otherwise, for any term and under such other conditions as the Secretary considers necessary or appropriate, may store in underutilized Strategic Petroleum Reserve facilities petroleum product 11 So in original. Probably should be “products”. owned by a foreign government or its representative. Petroleum products stored under this section are not part of the Strategic Petroleum Reserve and may be exported without license from the United States. (b) Protection of facilitiesAll agreements entered into pursuant to 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 on behalf of the foreign government or its representative. (c) Access to stored oilThe Secretary shall ensure that agreements to store petroleum products for foreign governments or their representatives do 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) Availability of fundsFunds collected through the leasing of Strategic Petroleum Reserve facilities authorized by subsection (a) after September 30, 2007, shall be used by the Secretary of Energy without further appropriation for the purchase of petroleum products for the Strategic Petroleum Reserve.

42 U.S.C. § 6247b Purchase of oil from marginal wells

(a) In generalFrom amounts authorized under section 6246 of this title, in any case in which the price of oil decreases to an amount less than $15.00 per barrel (an amount equal to the annual average well head price per barrel for all domestic crude oil), adjusted for inflation, the Secretary may purchase oil from a marginal well at $15.00 per barrel, adjusted for inflation. (b) Definition of marginal wellThe term “marginal well” has the same meaning as the definition of “stripper well property” in section 613A(c)(6)(E) of title 26.

42 U.S.C. § 6249 Contracting for petroleum product and facilities

(a) In generalSubject to the other provisions of this part, the Secretary may contract—(1) for storage, in otherwise unused Strategic Petroleum Reserve facilities, of petroleum product not owned by the United States; and (2) for storage, in storage facilities other than those of the Reserve, of petroleum product either owned or not owned by the United States. (b) Conditions(1) Petroleum product stored pursuant to such a contract shall, until the expiration, termination, or other conclusion of the contract, be a part of the Reserve and subject to the Secretary’s authority under part B. (2) The Secretary may enter into a contract for storage of petroleum product under subsection (a) only if—(A) the Secretary determines (i) that entering into one or more contracts under such subsection would achieve benefits comparable to the acquisition of an equivalent amount of petroleum product, or an equivalent volume of storage capacity, for the Reserve under part B, and (ii) that, because of budgetary constraints, the acquisition of an equivalent amount of petroleum product or volume of storage space for the Reserve cannot be accomplished under part B; and (B) the Secretary notifies each House of the Congress of the determination and identifies in the notification the location, type, and ownership of storage and related facilities proposed to be included, or the volume, type, and ownership of petroleum products proposed to be stored, in the Reserve, and an estimate of the proposed benefits. (3) A contract entered into under subsection (a) shall not limit the discretion of the President or the Secretary to conduct a drawdown and sale of petroleum products from the Reserve. (4) A contract entered into under subsection (a) shall include a provision that the obligation of the United States to make payments under the contract in any fiscal year is subject to the availability of appropriations. (c) Charge for storageThe Secretary may store petroleum product pursuant to a contract entered into under subsection (a)(1) with or without charge or may pay a fee for its storage. (d) DurationContracts entered into under subsection (a) may be of such duration as the Secretary considers necessary or appropriate. (e) Binding arbitrationThe Secretary may agree to binding arbitration of disputes under any contract entered into under subsection (a). (f) Availability of fundsThe Secretary may utilize such funds as are available in the SPR Petroleum Account to carry out the activities described in subsection (a), and may obligate and expend such funds to carry out such activities, in advance of the receipt of petroleum products.

42 U.S.C. § 6249a Implementation

(a), (b) Repealed. Pub. L. 106–469, title I, § 103(21), Nov. 9, 2000, 114 Stat. 2033 (c) Legal status regarding other lawPetroleum product and facilities contracted for under this part have the same status as petroleum product and facilities owned by the United States for all purposes associated with the exercise of the laws of any State or political subdivision thereof. (d) Return of productAt such time as the petroleum product contracted for under this part is withdrawn from the Reserve upon the expiration, termination, or other conclusion of the contract, such petroleum product (or the equivalent quantity of petroleum product withdrawn from the Reserve pursuant to the contract) shall be deemed, for purposes of determining the extent to which such product is thereafter subject to any Federal, State, or local law or regulation, not to have left the place where such petroleum product was located at the time it was originally committed to a contract under this part.

42 U.S.C. § 6249c Contracts for which implementing legislation is needed

(a) In general(1) In the case of contracts entered into under this part, and amendments to such contracts, for which implementing legislation will be needed, the Secretary may transmit an implementing bill to both Houses of the Congress. (2) In the Senate, any such bill shall be considered in accordance with the provisions of this section. (3) For purposes of this section—(A) the term “implementing bill” means a bill introduced in either House of Congress with respect to one or more contracts or amendments to contracts submitted to the House of Representatives and the Senate under this section and which contains—(i) a provision approving such contracts or amendments, or both; and (ii) legislative provisions that are necessary or appropriate for the implementation of such contracts or amendments, or both; and (B) the term “implementing revenue bill” means an implementing bill which contains one or more revenue measures by reason of which it must originate in the House of Representatives. (b) ConsultationThe Secretary shall consult, at the earliest possible time and on a continuing basis, with each committee of the House and the Senate that has jurisdiction over all matters expected to be affected by legislation needed to implement any such contract. (c) Effective dateEach contract and each amendment to a contract for which an implementing bill is necessary may become effective only if—(1) the Secretary, not less than 30 days before the day on which such contract is entered into, notifies the House of Representatives and the Senate of the intention to enter into such a contract and promptly thereafter publishes notice of such intention in the Federal Register; (2) after entering into the contract, the Secretary transmits a report to the House of Representatives and to the Senate containing a copy of the final text of such contract together with—(A) the implementing bill, and an explanation of how the implementing bill changes or affects existing law; and (B) a statement of the reasons why the contract serves the interests of the United States and why the implementing bill is required or appropriate to implement the contract; and (3) the implementing bill is enacted into law. (d) Rules of SenateSubsections (e) through (h) are enacted by the Congress—(1) as an exercise of the rulemaking power of the Senate, and as such they are deemed a part of the rules of the Senate but applicable only with respect to the procedure to be followed in the Senate in the case of implementing bills and implementing revenue bills described in subsection (a), and they supersede other rules only to the extent that they are inconsistent therewith; and (2) with full recognition of the constitutional right of the Senate to change the rules (so far as relating to the procedure of the Senate) at any time, in the same manner and to the same extent as in the case of any other rule of the Senate. (e) Introduction and referral in Senate(1) On the day on which an implementing bill is transmitted to the Senate under this section, the implementing bill shall be introduced (by request) in the Senate by the majority leader of the Senate, for himself or herself and the minority leader of the Senate, or by Members of the Senate designated by the majority leader and minority leader of the Senate. (2) If the Senate is not in session on the day on which such an agreement is submitted, the implementing bill shall be introduced in the Senate, as provided in the 11 So in original. The word “the” probably should not appear. paragraph (1), on the first day thereafter on which the Senate is in session. (3) Such bills shall be referred by the presiding officer of the Senate to the appropriate committee, or, in the case of a bill containing provisions within the jurisdiction of two or more committees, jointly to such committees for consideration of those provisions within their respective jurisdictions. (f) Consideration of amendments to implementing bill prohibited in Senate(1) No amendments to an implementing bill shall be in order in the Senate, and it shall not be in order in the Senate to consider an implementing bill that originated in the House if such bill passed the House containing any amendment to the introduced bill. (2) No motion to suspend the application of this subsection shall be in order in the Senate; nor shall it be in order in the Senate for the Presiding Officer to entertain a request to suspend the application of this subsection by unanimous consent. (g) Discharge in Senate(1) Except as provided in paragraph (3), if the committee or committees of the Senate to which an implementing bill has been referred have not reported it at the close of the 30th day after its introduction, such committee or committees shall be automatically discharged from further consideration of the bill, and it shall be placed on the appropriate calendar. (2) A vote on final passage of the bill shall be taken in the Senate on or before the close of the 15th day after the bill is reported by the committee or committees to which it was referred or after such committee or committees have been discharged from further consideration of the bill. (3) The provisions of paragraphs (1) and (2) shall not apply in the Senate to an implementing revenue bill. An implementing revenue bill received from the House shall be, subject to subsection (f)(1), referred to the appropriate committee or committees of the Senate. If such committee or committees have not reported such bill at the close of the 15th day after its receipt by the Senate, such committee or committees shall be automatically discharged from further consideration of such bill and it shall be placed on the calendar. A vote on final passage of such bill shall be taken in the Senate on or before the close of the 15th day after such bill is reported by the committee or committees of the Senate to which it was referred, or after such committee or committees have been discharged from further consideration of such bill. (4) For purposes of this subsection, in computing a number of days in the Senate, there shall be excluded any day on which the Senate is not in session. (h) Floor consideration in Senate(1) A motion in the Senate to proceed to the consideration of an implementing bill shall be privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in order to move to reconsider the vote by which the motion is agreed to or disagreed to. (2) Debate in the Senate on an implementing bill, and all debatable motions and appeals in connection therewith, shall be limited to not more than 20 hours. The time shall be equally divided between, and controlled by, the majority leader and the minority leader or their designees. (3) Debate in the Senate on any debatable motion or appeal in connection with an implementing bill shall be limited to not more than one hour to be equally divided between, and controlled by, the mover and the manager of the bill, except that in the event the manager of the bill is in favor of any such motion or appeal, the time in opposition thereto shall be controlled by the minority leader or his designee. Such leaders, or either of them, may, from time under their control on the passage of an implementing bill, allot additional time to any Senator during the consideration of any debatable motion or appeal. (4) A motion in the Senate to further limit debate is not debatable. A motion to recommit an implementing bill is not in order.

42 U.S.C. § 6250 Establishment

(a) Notwithstanding any other provision of this chapter, the Secretary may establish, maintain, and operate in the Northeast a Northeast Home Heating Oil Reserve. A Reserve established under this part is not a component of the Strategic Petroleum Reserve established under part B of this subchapter. A Reserve established under this part shall contain no more than 2 million barrels of petroleum distillate. (b) For the purposes of this part—(1) the term “Northeast” means the States of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, Pennsylvania, and New Jersey; (2) the term “petroleum distillate” includes heating oil and diesel fuel; and (3) the term “Reserve” means the Northeast Home Heating Oil Reserve established under this part.

42 U.S.C. § 6250a Authority

To the extent necessary or appropriate to carry out this part, the Secretary may— (1) purchase, contract for, lease, or otherwise acquire, in whole or in part, storage and related facilities, and storage services; (2) use, lease, maintain, sell, or otherwise dispose of storage and related facilities acquired under this part; (3) acquire by purchase, exchange (including exchange of petroleum products from the Strategic Petroleum Reserve or received as royalty from Federal lands), lease, or otherwise, petroleum distillate for storage in the Northeast Home Heating Oil Reserve; (4) store petroleum distillate in facilities not owned by the United States; and (5) sell, exchange, or otherwise dispose of petroleum distillate from the Reserve established under this part, including to maintain the quality or quantity of the petroleum distillate in the Reserve or to maintain the operational capability of the Reserve.

42 U.S.C. § 6250b Conditions for release; plan

(a) FindingThe Secretary may sell products from the Reserve only upon a finding by the President that there is a severe energy supply interruption. Such a finding may be made only if he determines that—(1) a dislocation in the heating oil market has resulted from such interruption; or (2) a circumstance, other than that described in paragraph (1), exists that constitutes a regional supply shortage of significant scope and duration and that action taken under this section would assist directly and significantly in reducing the adverse impact of such shortage. (b) DefinitionFor purposes of this section a “dislocation in the heating oil market” shall be deemed to occur only when—(1) The price differential between crude oil, as reflected in an industry daily publication such as “Platt’s Oilgram Price Report” or “Oil Daily” and No. 2 heating oil, as reported in the Energy Information Administration’s retail price data for the Northeast, increases by more than 60 percent over its 5-year rolling average for the months of mid-October through March (considered as a heating season average), and continues for 7 consecutive days; and (2) The price differential continues to increase during the most recent week for which price information is available. (c) Continuing evaluationThe Secretary shall conduct a continuing evaluation of the residential price data supplied by the Energy Information Administration for the Northeast and data on crude oil prices from published sources. (d) Release of petroleum distillateAfter consultation with the heating oil industry, the Secretary shall determine procedures governing the release of petroleum distillate from the Reserve. The procedures shall provide that—(1) the Secretary may—(A) sell petroleum distillate from the Reserve through a competitive process, or (B) enter into exchange agreements for the petroleum distillate that results 11 So in original. Probably should be “result”. in the Secretary receiving a greater volume of petroleum distillate as repayment than the volume provided to the acquirer; (2) in all such sales or exchanges, the Secretary shall receive revenue or its equivalent in petroleum distillate that provides the Department with fair market value. At no time may the oil be sold or exchanged resulting in a loss of revenue or value to the United States; and (3) the Secretary shall only sell or dispose of the oil in the Reserve to entities customarily engaged in the sale and distribution of petroleum distillate. (e) PlanWithin 45 days of November 9, 2000, the Secretary shall transmit to the President and, if the President approves, to the Congress a plan describing—(1) the acquisition of storage and related facilities or storage services for the Reserve, including the potential use of storage facilities not currently in use; (2) the acquisition of petroleum distillate for storage in the Reserve; (3) the anticipated methods of disposition of petroleum distillate from the Reserve; (4) the estimated costs of establishment, maintenance, and operation of the Reserve; (5) efforts the Department will take to minimize any potential need for future drawdowns and ensure that distributors and importers are not discouraged from maintaining and increasing supplies to the Northeast; and (6) actions to ensure quality of the petroleum distillate in the Reserve.

42 U.S.C. § 6250c Northeast Home Heating Oil Reserve Account

(a) EstablishmentUpon a decision of the Secretary of Energy to establish a Reserve under this part, the Secretary of the Treasury shall establish in the Treasury of the United States an account known as the “Northeast Home Heating Oil Reserve Account” (referred to in this section as the “Account”). (b) Depositsthe 11 So in original. Probably should be capitalized. Secretary of the Treasury shall deposit in the Account any amounts appropriated to the Account and any receipts from the sale, exchange, or other disposition of petroleum distillate from the Reserve. (c) Obligation of amountsThe Secretary of Energy may obligate amounts in the Account to carry out activities under this part without the need for further appropriation, and amounts available to the Secretary of Energy for obligation under this section shall remain available without fiscal year limitation.

42 U.S.C. § 6250d Exemptions

An action taken under this part is not subject to the rulemaking requirements of section 6393 of this title, section 7191 of this title, or section 553 of title 5.

42 U.S.C. § 6250f Limit on amount of petroleum distillate

Notwithstanding section 6250 of this title, for fiscal year 2012 and hereafter, the [Northeast Home Heating Oil] Reserve shall contain no more than 1 million barrels of petroleum distillate.

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