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Title II — Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development

H.R. 4956 · 113th Congress · Jun 24, 2014 · Lineage

II Modifying the Strategic Petroleum Reserve and Funding Conservation and Energy Research and Development

Sec. 201 Findings

Congress finds the following:
(1)
The Strategic Petroleum Reserve (SPR) was created by Congress in 1975, to protect the Nation from any future oil supply disruptions. When the program was established, United States refiners were capable of handling light crude and medium crude and the makeup of the SPR matched this capacity. This is not the case today.
(2)
A GAO analysis found that nearly half of the refineries considered vulnerable to supply disruptions are not compatible with the types of oil currently stored in the SPR and would be unable to maintain normal refining capacity if forced to rely on SPR oil as currently constituted, thereby reducing the effectiveness of the SPR in the event of a supply disruption. GAO concluded that the SPR should be comprised of at least 10 percent heavy crude.
(3)
This Act implements the GAO recommendation and dedicates funds received from the transactions to existing energy conservation, research, and assistance programs.

Sec. 202 Definitions

In this title—
(1)
the term light grade petroleum means crude oil with an API gravity of 35 degrees or higher;
(2)
the term heavy grade petroleum means crude oil with an API gravity of 26 degrees or lower; and
(3)
the term Secretary means the Secretary of Energy.

Sec. 203 Objectives

The objectives of this title are as follows:
(1)
To modernize the composition of the Strategic Petroleum Reserve to reflect the current processing capabilities of refineries in the United States.
(2)
To provide increased funding to accelerate conservation, energy research and development, and assistance through existing programs.

Sec. 204 Modification of the strategic petroleum reserve

Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary shall publish a plan not later than 30 days after the date of enactment of this Act to—
(1)
exchange as soon as possible light grade petroleum from the Strategic Petroleum Reserve, in an amount equal to 10 percent of the total number of barrels of crude oil in the Reserve as of the date of enactment of this Act, for an equivalent volume of heavy grade petroleum plus any additional cash bonus bids received that reflect the difference in the market value between light grade petroleum and heavy grade petroleum and the timing of deliveries of the heavy grade petroleum;
(2)
from the gross proceeds of the cash bonus bids, deposit the amount necessary to pay for the direct administrative and operational costs of the exchange into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); and
(3)
deposit 90 percent of the remaining net proceeds from the exchange into the account established under section 205(a).

Sec. 205 Energy Independence and Security Fund

(a)
Establishment— There is hereby established in the Treasury of the United States the “Energy Independence and Security Fund” (in this section referred to as the “Fund”).
(b)
Administration— The Secretary shall be responsible for administering the Fund for the purpose of carrying out this section.
(c)
Deposits— The Secretary shall transfer the balance of funds in the SPR Petroleum Account on the date of enactment of this Act in excess of $10,000,000 into the Fund.
(d)
Distribution of funds— The Secretary shall make amounts from the Fund available for obligation, without further appropriation and without fiscal year limitation, for the following purposes:
(1)
Advanced research projects agency—energy— The Secretary may transfer amounts to the account “Energy Transformation Acceleration Fund”, established under section 5012(m) of the America COMPETES Act (42 U.S.C. 16538(m)), including amounts—
(A)
for university-based research projects; and
(B)
for program direction expenses.
(2)
Wind energy research and development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for a program to support the development of next-generation wind turbines, including turbines capable of operating in areas with low wind speeds, as authorized in section 931(a)(2)(B) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)).
(3)
Solar energy research and development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of solar energy technologies, and public education and outreach materials pursuant to such program, as authorized by section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(A)).
(4)
Marine and hydrokinetic renewable electric energy— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of ocean and wave energy, including hydrokinetic renewable energy, as authorized by section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17215).
(5)
Advanced vehicles research, development, and demonstration— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for research, development, and demonstration on advanced, cost-effective technologies to improve the energy efficiency and environmental performance of vehicles, as authorized in section 911(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(A)).
(6)
Industrial energy efficiency research and development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of new technologies to improve the energy efficiency and reduce greenhouse gas emissions from industrial processes, as authorized in section 911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and in section 452 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111).
(7)
Building and lighting energy efficiency research and development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of new technologies to improve the energy efficiency of and reduce greenhouse gas emissions from buildings, as authorized in section 321(g) of the Energy Independence and Security Act of 2007 (42 U.S.C. 6295 note), section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082), and section 912 of the Energy Policy Act of 2005 (42 U.S.C. 16192).
(8)
Geothermal energy development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for geothermal research and development activities to be managed by the National Renewable Energy Laboratory, as authorized by sections 613, 614, 615, and 616 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17192–95) and section 931(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).
(9)
Smart grid technology research, development, and demonstration— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for research, development, and demonstration of smart grid technologies, as authorized by section 1304 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17384).
(10)
Carbon capture and storage— The Secretary may transfer amounts to the account “Fossil Energy Research and Development” for necessary expenses for a program of demonstration projects of carbon capture and storage, and for a research program to address public health, safety, and environmental impacts, as authorized by section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 and 707 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17251, 17255).
(11)
Nonconventional domestic natural gas production and environmental research—
(A)
The Secretary may transfer amounts to the account authorized by section 999H(e) of the Energy Policy Act of 2005 (42 U.S.C. 16378(e)).
(B)
The Secretary may transfer amounts to the account “Fossil Energy Research and Development” for necessary expenses for a program of basin-oriented assessments and public and private partnerships involving States and industry to foster the development of regional advanced technological, regulatory, and economic development strategies for the efficient and environmentally sustainable recovery and market delivery of natural gas and domestic petroleum resources within the United States, and for support for the Stripper Well Consortium.
(12)
Hydrogen research and development— The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” for necessary expenses for the Department of Energy’s H–Prize Program, as authorized by section 1008(f) of the Energy Policy Act of 2005 (42 U.S.C. 16396(f)).
(13)
Energy storage for transportation and electric power—
(A)
The Secretary may transfer amounts to the account “Basic Energy Sciences” for necessary expenses for a program to accelerate basic research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution, as authorized by section 641(p)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(1)).
(B)
The Secretary may transfer amounts to the account “Energy Efficiency and Renewable Energy” including—
(i)
amounts for a program to accelerate applied research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution as authorized by section 641(p)(2) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(2));
(ii)
amounts for energy storage systems demonstrations as authorized by section 641(p)(4) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(4)); and
(iii)
amounts for vehicle energy storage systems demonstrations as authorized by section 641(p)(5) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(5)).
(e)
Transfer procedures— The Secretary shall make an initial transfer from the Fund no later than 30 days after the initial deposit of monies into the Fund. The Secretary shall make additional transfers no later than 30 days after subsequent deposits.
(f)
Management and oversight—
(1)
Additionality of fiscal year 2008 transfers— All amounts transferred under subsection (d) shall be in addition to, and shall not be substituted for, any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2014 or any other enacted legislation.
(2)
Excess funds— The total of all amounts transferred under subsection (d) and any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2008 or any other enacted legislation may not exceed the amounts authorized in other Acts for such purposes. In the event that amounts made available under this title plus amounts under the Consolidated Appropriations Act, 2014 exceed the cumulative amounts authorized in other Acts for any program funded by this Act, the excess amounts shall be distributed to the other programs funded by this title on a pro rata basis.
(3)
Program plans and performance measures— The Secretary shall prepare and publish in the Federal Register a plan for the proposed use of all funds authorized in subsection (d). The plan also shall identify how the use of these funds will be additive to, and not displace, annual appropriations. The plans also shall identify performance measures to assess the additional benefits that may be realized from the application of the additional funding provided under this section. The initial plan shall be published in the Federal Register not later than 45 days after the date of enactment of this Act.
(4)
Congressional oversight and review— Nothing in this section shall limit or restrict the review and oversight of program plans by the appropriate committees of Congress. Nothing in this section shall limit or restrict the authority of Congress to set alternative spending limitations in annual appropriations Acts.
(5)
Apportionment— All transactions of the Fund shall be exempt from apportionment under the provisions of subchapter II of chapter 15 of title 31, United States Code.