I 110th CONGRESS 2d Session H. R. 6125 IN THE HOUSE OF REPRESENTATIVES May 22, 2008 Mr. Burgess introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Oversight and Government Reform, 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 provide a mechanism for the construction of petroleum refineries on military installations to provide a reliable source of petroleum products for use by the Armed Forces, and for other purposes.

1.

Military use refineries

(a)

Authorization

The President may authorize the design and construction of one petroleum refinery for each of the Army, Navy, Air Force, and Marine Corps that will be— (1)located at a site— (A)on a military installation designated by the President, other than a closed military installation or portion thereof; or (B)on a closed military installation, or portion thereof, made available for the siting of a refinery in the manner provided by the base closure law applicable to the installation; and (2)reserved for the exclusive purpose of manufacturing petroleum products designated for consumption by units and elements of that branch of the Armed Forces. (b)

Solicitation for design and construction proposals

The President shall solicit proposals for the design and construction of a refinery under this section. In selecting a proposal or proposals under this subsection, the President shall consider— (1)the ability of the applicant to undertake and complete the project; (2)the extent to which the applicant’s proposal serves the purposes of the project; and (3)the ability of the applicant to best satisfy the criteria set forth in subsection (c). (c)

Refinery criteria

A refinery constructed under this section shall meet or exceed the industry average for— (1)construction efficiencies; and (2)operational efficiencies, including cost efficiencies. (d)

Operation of refinery

In the case of a site referred to in subsection (a)(1)(A), after the construction of the refinery, the site shall be leased for operation, for its fair market value, to an applicant selected in the manner described in subsection (b). In the case of a site referred to in subsection (a)(1)(B), after the construction of the refinery, the site shall be disposed of in the manner provided by the applicable base closure law. (e)

Use of products

All petroleum products manufactured at a refinery constructed under this section shall be sold to the Federal Government, at a price not to exceed the fair market value of the petroleum products, for use by the Armed Forces. (f)

Funding

A contract for the design or construction of a refinery may not be entered into under this section in advance of the appropriation of funds sufficient for such purpose. Funds appropriated for the Department of Defense or for Department of Energy national security programs may not be used to enter into contracts under this section for the design, construction, or operation of a refinery. Funds appropriated for the Department of Defense may be used to purchase petroleum products manufactured at a refinery constructed under this section for use by the Armed Forces. (g)

Definitions

In this section: (1)The term base closure law means the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note) and title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note). (2)The term closed military installation means a military installation closed or approved for closure pursuant to a base closure law.

2.

Repeal of requirement relating to procurement and acquisition of alternative fuels

Section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17142) is repealed.