[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5405 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5405

  To provide the Secretary of Energy with authority to draw down the 
   Strategic Petroleum Reserve when oil and gas prices in the United 
States rise sharply because of anticompetitive activity, and to require 
    the President, through the Secretary of Energy, to consult with 
    Congress regarding the sale of oil from the Strategic Petroleum 
                                Reserve.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2004

  Mr. Larson of Connecticut introduced the following bill; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To provide the Secretary of Energy with authority to draw down the 
   Strategic Petroleum Reserve when oil and gas prices in the United 
States rise sharply because of anticompetitive activity, and to require 
    the President, through the Secretary of Energy, to consult with 
    Congress regarding the sale of oil from the Strategic Petroleum 
                                Reserve.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oil Price Safeguard Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) a sharp, sustained increase in the price of crude oil 
        would negatively affect the overall economic well-being of the 
        United States;
            (2) the United States currently imports roughly 55 percent 
        of its oil;
            (3) heating oil price increases disproportionately harm the 
        poor and the elderly; and
            (4) the global oil market is often greatly influenced by 
        nonmarket-based supply manipulations, including price fixing 
        and production quotas.

SEC. 3. DRAWDOWN OF STRATEGIC PETROLEUM RESERVE.

    Section 161(d) of the Energy Policy and Conservation Act (42 U.S.C. 
6241(d)) is amended by adding at the end the following:
    ``(3) Reduction in Supply Caused by Anticompetitive Conduct.--
            ``(A) In general.--For the purposes of this section, in 
        addition to the circumstances set forth in section 3(8) and in 
        paragraph (2) of this subsection, a severe energy supply 
        interruption shall be deemed to exist if the President 
        determines that--
                    ``(i) there is a significant reduction in supply 
                that--
                            ``(I) is of significant scope and duration; 
                        and
                            ``(II) has caused a significant increase in 
                        the price of petroleum products;
                    ``(ii) the increase in price is likely to cause a 
                significant adverse impact on the national economy; and
                    ``(iii) a substantial cause of the reduction in 
                supply is the anticompetitive conduct of 1 or more 
                foreign countries or international entities.
            ``(B) Deposit and use of proceeds.--Proceeds from the sale 
        of petroleum drawn down pursuant to a Presidential 
        determination under subparagraph (A) shall--
                    ``(i) be deposited in the SPR Petroleum Account; 
                and
                    ``(ii) be used only for the purposes specified in 
                section 167.''.

SEC. 4. REPORTING AND CONSULTATION REQUIREMENTS.

    If the price of a barrel of crude oil exceeds $35 (in constant 2003 
United States dollars) for a period greater than 14 days, the 
President, through the Secretary of Energy, shall, not later than 30 
days after the end of the 14-day period, submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Energy 
and Commerce of the House of Representatives a report that--
            (1) states the results of a comprehensive review of the 
        causes and potential consequences of the price increase;
            (2) provides an estimate of the likely duration of the 
        price increase, based on analyses and forecasts of the Energy 
        Information Administration;
            (3) provides an analysis of the effects of the price 
        increase on the cost of home heating oil; and
            (4) states whether, and provides a specific rationale for 
        why, the President does or does not support the drawdown and 
        distribution of a specified amount of oil from the Strategic 
        Petroleum Reserve.
                                 <all>