---
kind: "section"
citation: "42 U.S.C. § 6250b"
title: "42"
title_heading: "The Public Health and Welfare"
number: "6250b"
heading: "Conditions for release; plan"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/6250b"
units:
  - "Chapter 77 — Energy Conservation"
  - "Subchapter I — Domestic Supply Availability"
  - "Part D — Northeast Home Heating Oil Reserve"
---

# §6250b. Conditions for release; plan

- (a) **Finding—** The [Secretary](/usc/42/6202.md?p=1) may sell products from the [Reserve](/usc/42/6232.md?p=9) only upon a finding by the President that there is a [severe energy supply interruption](/usc/42/6202.md?p=8). 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)](#a-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) **Definition—** For 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](/usc/42/6291.md?p=3) 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 evaluation—** The [Secretary](/usc/42/6202.md?p=1) shall conduct a continuing evaluation of the residential price data supplied by the [Energy](/usc/42/6291.md?p=3) Information Administration for the Northeast and data on crude oil prices from published sources.
- (d) **Release of petroleum distillate—** After consultation with the heating oil industry, the [Secretary](/usc/42/6202.md?p=1) shall determine procedures governing the release of petroleum distillate from the [Reserve](/usc/42/6232.md?p=9). The procedures shall provide that—
  - (1) the [Secretary](/usc/42/6202.md?p=1) may—
    - (A) sell petroleum distillate from the [Reserve](/usc/42/6232.md?p=9) through a competitive process, or
    - (B) enter into exchange agreements for the petroleum distillate that results[^1] in the [Secretary](/usc/42/6202.md?p=1) 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](/usc/42/6202.md?p=1) 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](/usc/42/6202.md?p=5); and
  - (3) the [Secretary](/usc/42/6202.md?p=1) shall only sell or dispose of the oil in the [Reserve](/usc/42/6232.md?p=9) to entities customarily engaged in the sale and distribution of petroleum distillate.
- (e) **Plan—** Within 45 days of November 9, 2000, the [Secretary](/usc/42/6202.md?p=1) shall transmit to the President and, if the President approves, to the Congress a plan describing—
  - (1) the acquisition of storage and [related facilities](/usc/42/6232.md?p=8) or storage services for the [Reserve](/usc/42/6232.md?p=9), including the potential use of [storage facilities](/usc/42/6232.md?p=10) not currently in use;
  - (2) the acquisition of petroleum distillate for storage in the [Reserve](/usc/42/6232.md?p=9);
  - (3) the anticipated methods of disposition of petroleum distillate from the [Reserve](/usc/42/6232.md?p=9);
  - (4) the estimated costs of establishment, maintenance, and operation of the [Reserve](/usc/42/6232.md?p=9);
  - (5) efforts the Department will take to minimize any potential need for future drawdowns and ensure that [distributors](/usc/42/6291.md?p=14) and [importers](/usc/42/6232.md?p=2) are not discouraged from maintaining and increasing supplies to the Northeast; and
  - (6) actions to ensure quality of the petroleum distillate in the [Reserve](/usc/42/6232.md?p=9).

## Footnotes

[^1]: So in original. Probably should be “result”.

## Source credit

(Pub. L. 94–163, title I, § 183, as added Pub. L. 106–469, title II, § 201(a)(3), Nov. 9, 2000, 114 Stat. 2035; amended Pub. L. 109–58, title III, § 301(d), Aug. 8, 2005, 119 Stat. 684.)

## Notes

### Editorial Notes

### Amendments

2005—Subsec. (b)(1). Pub. L. 109–58 substituted “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)” for “by more tan 60 percent over its 5 year rolling average for the months of mid-October through March”.