US Codex
Pub. L.
Notes

Title IV — Strategic Petroleum Reserve

114th Congress · Approved Nov 2, 2015 · 129 Stat. 584 · Lineage

TITLE IV Strategic Petroleum Reserve

SEC. 401. Strategic Petroleum Reserve Test Drawdown and Sale Notification and Definition Change.

(a)
Notice to Congress.— Section 161(g) of the Energy Policy and Conservation Act (42 U.S.C. 6241(g)) is amended by striking paragraph (8) and inserting the following:

“(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 165.”

(b)
Definition Change.— Section 3(8)(C)(iii) of the Energy Policy and Conservation Act (42 U.S.C. 6202(8)(C)(iii)) is amended by striking “ sabotage or an act of God” and inserting “ sabotage, an act of terrorism, or an act of God”.

SEC. 402. Strategic Petroleum Reserve Mission Readiness Optimization.

Not later than 180 days after the date of enactment of this Act, the Secretary shall—
(1)
complete a long-range strategic review of the Strategic Petroleum Reserve; and
(2)
develop and submit to Congress a proposed action plan, including a proposed implementation schedule, that—
(A)
specifies near- and long-term roles of the Strategic Petroleum Reserve relative to the energy and economic security goals and objectives of the United States;
(B)
describes whether existing legal authorities that govern the policies, configuration, and capabilities of the Strategic Petroleum Reserve are adequate to ensure that the Strategic Petroleum Reserve can meet the current and future energy and economic security goals and objectives of the United States;
(C)
identifies the configuration and performance capabilities of the Strategic Petroleum Reserve and recommends an action plan to achieve the optimal—
(i)
capacity, location, and composition of petroleum products in the Strategic Petroleum Reserve; and
(ii)
storage and distributional capabilities; and
(D)
estimates the resources required to attain and maintain the long-term sustainability and operational effectiveness of the Strategic Petroleum Reserve.

SEC. 403. Strategic Petroleum Reserve Drawdown and Sale.

(a)
Drawdown and Sale.— Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), except as provided in subsection (b), the Secretary of Energy shall draw down and sell—
(1)
5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2018;
(2)
5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2019;
(3)
5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2020;
(4)
5,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2021;
(5)
8,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2022;
(6)
10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2023;
(7)
10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2024; and
(8)
10,000,000 barrels of crude oil from the Strategic Petroleum Reserve during fiscal year 2025.
(b)
Emergency Protection.— The Secretary shall not draw down and sell crude oil under this section in amounts that would limit the authority to sell petroleum products under section 161(h) of the Energy Policy and Conservation Act (42 U.S.C. 6241(h)) in the full amount authorized by that subsection.
(c)
Proceeds.— Proceeds from a sale under this section shall be deposited into the general fund of the Treasury during the fiscal year in which the sale occurs.

SEC. 404. Energy Security and Infrastructure Modernization Fund.

(a)
Establishment.— There is hereby established in the Treasury of the United States a fund to be known as the Energy Security and Infrastructure Modernization Fund (referred to in this section as the “Fund”), consisting of—
(1)
collections deposited in the Fund under subsection (c); and
(2)
amounts otherwise appropriated to the Fund.
(b)
Purpose.— The purpose of the Fund is to provide for the construction, maintenance, repair, and replacement of Strategic Petroleum Reserve facilities.
(c)
Collection and Deposit of Sale Proceeds in Fund.—
(1)
Drawdown and sale.— Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), to the extent provided in advance in appropriation Acts, the Secretary of Energy shall draw down and sell crude oil from the Strategic Petroleum Reserve in amounts as authorized under subsection (e), except as provided in paragraph (2). Amounts received for a sale under this paragraph shall be deposited into the Fund during the fiscal year in which the sale occurs. Such amounts shall remain available in the Fund without fiscal year limitation.
(2)
Emergency protection.— The Secretary shall not draw down and sell crude oil under this subsection in amounts that would limit the authority to sell petroleum products under section 161(h) of the Energy Policy and Conservation Act (42 U.S.C. 6241(h)) in the full amount authorized by that subsection.
(d)
Authorized Uses of Fund.—
(1)
In general.— Amounts in the Fund may be used for, or may be credited as offsetting collections for amounts used for, carrying out the program described in paragraph (2)(B), to the extent provided in advance in appropriation Acts.
(2)
Program to modernize the strategic petroleum reserve.—
(A)
Findings.— Congress finds the following:
(i)
The Strategic Petroleum Reserve is one of the Nation’s most valuable energy security assets.
(ii)
The age and condition of the Strategic Petroleum Reserve have diminished its value as a Federal energy security asset.
(iii)
Global oil markets and the location and amount of United States oil production and refining capacity have dramatically changed in the 40 years since the establishment of the Strategic Petroleum Reserve.
(iv)
Maximizing the energy security value of the Strategic Petroleum Reserve requires a modernized infrastructure that meets the drawdown and distribution needs of changed domestic and international oil and refining market conditions.
(B)
Program.— The Secretary of Energy shall establish a Strategic Petroleum Reserve modernization program to protect the United States economy from the impacts of emergency product supply disruptions. The program may include—
(i)
operational improvements to extend the useful life of surface and subsurface infrastructure;
(ii)
maintenance of cavern storage integrity; and
(iii)
addition of infrastructure and facilities to optimize the drawdown and incremental distribution capacity of the Strategic Petroleum Reserve.
(e)
Authorization of Appropriations.— There are authorized to be appropriated (and drawdowns and sales under subsection (c) in an equal amount are authorized) for carrying out subsection (d)(2)(B), $2,000,000,000 for the period encompassing fiscal years 2017 through 2020.
(f)
Transmission of Department Budget Requests.— The Secretary of Energy shall prepare and submit in the Department’s annual budget request to Congress—
(1)
an itemization of the amounts of funds necessary to carry out subsection (d); and
(2)
a designation of any activities thereunder for which a multiyear budget authority would be appropriate.
(g)
Sunset.— The authority of the Secretary to draw down and sell crude oil from the Strategic Petroleum Reserve under this section shall expire at the end of fiscal year 2020.