Section 1 Short title
This Act may be cited as the “Strategic Petroleum Reserve Replenishment Act”.
Strategic Petroleum Reserve Replenishment Act
A BILL
To replenish the Strategic Petroleum Reserve, and for other purposes.
Sec. 2 Findings
Congress finds the following:
On May 5, 2022, the Department of Energy announced “a long-term replenishment plan” for the Strategic Petroleum Reserve under which the Department “intends to begin a rule-making proceeding to consider broadening DOE’s buyback regulations to allow for a competitive, fixed-price bid process as an alternative to the index-pricing that is traditionally used”.
Such fixed-price bid process is not a traditional mechanism used by oil traders.
Sec. 3 Replenishing the Strategic Petroleum Reserve
In general— Subject to the provisions of section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240) and the availability of appropriations for such purpose, the Secretary of Energy shall acquire, by purchase, exchange, or otherwise, a minimum of 3,600,000 barrels of petroleum products for storage in the Strategic Petroleum Reserve per month during the period that—
begins on the date that is the first day of the month following the date that the Secretary of Energy determines is the first date after the date of enactment of this Act that the West Texas Intermediate spot price per barrel has been $90 or less for a period of 100 consecutive days; and
ends on the date that the Secretary of Energy determines is the first date after the date of enactment of this Act that the Strategic Petroleum Reserve stores at least 710,000,000 barrels of petroleum products.
Use of index-Based pricing— In purchasing petroleum products pursuant to this Act, the Secretary of Energy shall use an index-based bidding process.
Treatment as additional acquisitions— Any acquisition of petroleum products made pursuant to this Act shall be in addition to (and not in lieu of) acquisitions of petroleum products the Secretary of Energy would otherwise make pursuant to part B of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.).