II 110th CONGRESS 2d Session S. 2927 IN THE SENATE OF THE UNITED STATES April 28, 2008 Mr. Barrasso (for himself and Mr. Bond) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To increase the supply and lower the cost of petroleum by temporarily suspending the acquisition of petroleum for the Strategic Petroleum Reserve and to amend the Energy Policy and Conservation Act to include additional acquisition requirements for the Reserve.

1.

Short title

This Act may be cited as the Government Oil Acquisition Financial Accountability and Consumer Relief Act of 2008.

2.

Suspension of petroleum acquisition for Strategic Petroleum Reserve

(a)

In general

Notwithstanding any other provision of law, during any period in which the conditions described in subsection (b) are not met, the Secretary of Energy shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program or any other acquisition method. (b)

Resumption

(1)

In general

The Secretary may resume acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program or any other acquisition method under subsection (a) not earlier than 30 days after the date on which the Secretary notifies Congress that the Secretary has determined that, for the most recent consecutive 4-week period— (A)the weighted average price of retail, regular, all formulations gasoline in the United States is $2.50 or less per gallon (as adjusted under paragraph (2)); or (B)the weighted average price of retail, No. 2 diesel in the United States is $2.75 or less per gallon (as adjusted under paragraph (2)). (2)

Adjustment

For fiscal year 2009 and each subsequent fiscal year, the prices described in subparagraphs (A) and (B) of paragraph (1) for the preceding fiscal year shall be adjusted to reflect changes for the 12-month period ending the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.

3.

Additional acquisition requirements

Section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240) is amended by inserting after subsection (c) the following: (d)

Additional acquisition requirements

(1)

In general

To the maximum extent practicable, any acquisitions made by the Secretary for the Reserve shall reflect a steady monthly dollar value of oil acquired through the royalty-in-kind program or any other acquisition method allowed by law. (2)

Particular inclusion

(A)

Definition of heavy crude oil

In this paragraph, the term heavy crude oil means oil with a gravity index of not more than 22 degrees. (B)

Requirement

To the extent technologically feasible, financially beneficial for the Treasury of the United States, and compatible with domestic refining requirements, the Secretary shall include at least 10 percent heavy crude oil in making any acquisitions of crude oil for the Reserve. (3)

Negotiation of delivery dates

Nothing in this subsection limits the ability of the Secretary to negotiate delivery dates for crude oil acquired for the Reserve. (4)

National security needs

The Secretary may waive any requirement under this subsection if the Secretary determines that the requirement is inconsistent with the national security needs of the United States. .