[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6067 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6067

To amend the Energy Policy and Conservation Act to help reduce the oil 
 prices to consumers, to reduce the cost of petroleum acquisition for 
the Strategic Petroleum Reserve, to better match the composition of the 
  Strategic Petroleum Reserve to refinery requirements in the United 
    States, to fund energy research and development, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2008

Mr. Lampson (for himself, Mr. Edwards, Mr. Markey, Mr. Shays, Mr. Gene 
Green of Texas, Mr. Inglis of South Carolina, Mr. Moore of Kansas, Mr. 
 Cramer, Mr. Kind, Mr. Bartlett of Maryland, Mr. Welch of Vermont, Mr. 
 Hill, Ms. Giffords, Mr. Boswell, Mr. Bishop of Georgia, Mr. Wilson of 
 Ohio, Mr. Chandler, Mr. Hall of New York, Mr. Nadler, Mr. Inslee, Mr. 
    Kagen, and Mr. Israel) introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
      the Committee on Science and Technology, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Energy Policy and Conservation Act to help reduce the oil 
 prices to consumers, to reduce the cost of petroleum acquisition for 
the Strategic Petroleum Reserve, to better match the composition of the 
  Strategic Petroleum Reserve to refinery requirements in the United 
    States, to fund energy research and development, and for other 
                               purposes.

    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 ``Invest in Energy Independence Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The composition of petroleum that is currently being 
        acquired for the Strategic Petroleum Reserve is putting upward 
        pressure on world oil prices and the ultimate price of gasoline 
        and other petroleum products for consumers.
            (2) The quality of petroleum that is currently being 
        acquired for the Strategic Petroleum Reserve is contributing to 
        the growing disparity between the types of petroleum in the 
        Reserve and the current processing capabilities of petroleum 
        refineries in the United States.
            (3) The composition of petroleum in the Strategic Petroleum 
        Reserve should more closely match the current processing 
        capabilities of petroleum refiners in the United States, which 
        should reduce the cost of acquiring petroleum for the Reserve.
            (4) Lighter grade petroleum with an API gravity of 35 
        degrees or higher is in significantly greater demand than heavy 
        grade petroleum with an API gravity of 26 degrees or lower, 
        creating a significant premium in the price of light grade 
        petroleum relative to heavy grade petroleum.
            (5) Significant additional funding is needed for important 
        energy research and development activities that will help 
        reduce United States dependence on oil and transform our energy 
        infrastructure through the adoption of clean domestic energy 
        technologies.
            (6) Current acquisitions of petroleum for the Strategic 
        Petroleum Reserve are pursued on a volume-per-month basis, 
        which is not as cost-effective as other approaches that take 
        advantage of market fluctuations.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``light grade petroleum'' means--
                    (A) crude oil in the Strategic Petroleum Reserve 
                categorized as Bayou Choctaw Sweet, Big Hill Sweet, 
                West Hackberry Sweet, or Bryan Mound Sweet; and
                    (B) oil acquired for storage in the Strategic 
                Petroleum Reserve with one of the categories of oil 
                referred to in subparagraph (A);
            (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. 4. OBJECTIVES.

    The objectives of this Act are as follows:
            (1) To increase the total inventory level in the Strategic 
        Petroleum Reserve without the need for additional 
        appropriations.
            (2) To reduce the cost of petroleum acquisition for the 
        Strategic Petroleum Reserve.
            (3) To provide increased funding to accelerate energy 
        research and development that will reduce the United States 
        dependence on oil, transform the energy infrastructure through 
        the adoption of clean domestic energy technologies, and reduce 
        the emissions of greenhouse gases.
            (4) To modernize the composition of petroleum in the 
        Strategic Petroleum Reserve to reflect the current processing 
        capabilities of refineries in the United States.

SEC. 5. MODERNIZATION OF THE STRATEGIC PETROLEUM RESERVE.

    (a) Initial Petroleum Exchange From 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);
            (3) deposit 90 percent of the remaining net proceeds from 
        the exchange into the account established under section 6(a); 
        and
            (4) deposit the remaining balance into the SPR Petroleum 
        Account to acquire additional petroleum for the Strategic 
        Petroleum Reserve.
    (b) Study of the Potential for Additional Exchanges From the 
Strategic Petroleum Reserve.--The Secretary shall conduct a study of 
the potential for additional changes in the composition of light grade 
petroleum and heavy grade petroleum in the Strategic Petroleum Reserve. 
The Secretary shall submit to Congress a report, containing the results 
of the study and any recommendations with regard to the need for 
additional changes in the composition of the petroleum in the Reserve, 
not later than 18 months after the date of enactment of this Act.
    (c) Dollar Cost Averaging.--To decrease the cost and improve the 
efficiency of filling the Strategic Petroleum Reserve, the Secretary 
shall, to the maximum extent possible, purchase, exchange, or otherwise 
acquire crude oil for the Reserve on a dollar cost averaging basis. For 
purposes of this subsection, dollar cost averaging means an acquisition 
goal for each fiscal year of a constant monthly dollar value of 
petroleum.
    (d) Deferrals.--The Secretary may, when economically beneficial and 
practical, grant requests to defer scheduled deliveries of petroleum to 
the Reserve if it will receive a premium for the deferral paid in 
additional barrels of oil which will reduce the cost of oil acquisition 
and increase the volume of oil delivered to the Reserve.

SEC. 6. 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 available for 
obligation, without further appropriation and without fiscal year 
limitation, the following amounts from the Fund:
            (1) Advanced research projects agency--energy.--The 
        Secretary shall transfer $100,000,000 to the account ``Energy 
        Transformation Acceleration Fund'', established under section 
        5012(m) of the America COMPETES Act (42 U.S.C. 16538(m), to 
        remain available until expended. Of the funds so transferred, 
        the Secretary shall further allocate the amounts made available 
        for obligation as follows:
                    (A) $50,000,000 shall be available for university-
                based research projects.
                    (B) $10,000,000 shall be available for program 
                direction expenses.
            (2) Wind energy research and development.--The Secretary 
        shall transfer $15,000,000 to the account ``Energy Efficiency 
        and Renewable Energy'', to remain available until expended, 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 
        shall transfer $30,000,000 to the account ``Energy Efficiency 
        and Renewable Energy'', to remain available until expended, 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) Low income weatherization.--The Secretary shall 
        transfer $100,000,000 to the account ``Weatherization 
        Assistance Program'', to remain available until expended, for 
        necessary expenses for a program to weatherize low income 
        housing, as authorized by section 411 of the Energy 
        Independence and Security Act of 2007 (Public Law 110-140).
            (5) Marine and hydrokinetic renewable electric energy.--The 
        Secretary shall transfer $30,000,000 to the account ``Energy 
        Efficiency and Renewable Energy'', to remain available until 
        expended, 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).
            (6) Advanced vehicles research, development, and 
        demonstration.--The Secretary shall transfer $40,000,000 to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, 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)).
            (7) Industrial energy efficiency research and 
        development.--The Secretary shall transfer $110,000,000 to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, 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).
            (8) Building and lighting energy efficiency research and 
        development.--The Secretary shall transfer $70,000,000 to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, 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).
            (9) Geothermal energy development.--The Secretary shall 
        transfer $30,000,000 to the account ``Energy Efficiency and 
        Renewable Energy'', to remain available until expended, 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)).
            (10) Smart grid technology research, development, and 
        demonstration.--The Secretary shall transfer $30,000,000 to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, 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).
            (11) Carbon capture and storage.--The Secretary shall 
        transfer $385,000,000 to the account ``Fossil Energy Research 
        and Development'', to remain available until expended, 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). 
        Notwithstanding any other provision of law, one of the 
        demonstration projects shall be a component of the FutureGen 
        project.
            (12) Nonconventional domestic natural gas production and 
        environmental research.--
                    (A) The Secretary shall transfer $50,000,000 to the 
                account authorized by section 999H(e) of the Energy 
                Policy Act of 2005 (42 U.S.C. 16378(e)), to remain 
                available until expended.
                    (B) The Secretary shall transfer $15,000,000 to the 
                account ``Fossil Energy Research and Development'', to 
                remain available until expended, 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.
            (13) Hydrogen research and development.--The Secretary 
        shall transfer $5,000,000 to the account ``Energy Efficiency 
        and Renewable Energy'', to remain available until expended, 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)).
            (14) Energy storage for transportation and electric 
        power.--
                    (A) The Secretary shall transfer $30,000,000 to the 
                account ``Basic Energy Sciences'', to remain available 
                until expended, 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 shall transfer $70,000,000 to the 
                account ``Energy Efficiency and Renewable Energy'', to 
                remain available until expended, including--
                            (i) $30,000,000 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) $20,000,000 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) $20,000,000 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. If the amount 
available to be transferred is less than the levels authorized under 
subsection (d), the transfers for each program shall be allocated on a 
pro rata basis. If the amount available to be transferred exceeds the 
levels authorized under subsection (d), the transfers for each program 
shall be increased on a pro rata basis.
    (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, 2008.
            (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 
        may not exceed the amounts authorized in other Acts for such 
        purposes. In the event that amounts made available under this 
        Act plus amounts under the Consolidated Appropriations Act, 
        2008 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 Act 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 90 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.
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