I 112th CONGRESS 1st Session H. R. 1017 IN THE HOUSE OF REPRESENTATIVES March 10, 2011 Mr. Markey (for himself, Mr. Owens, Mr. Welch, Ms. DeLauro, and Mrs. Capps) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To provide for the sale of light grade petroleum from the Strategic Petroleum Reserve and its replacement with refined petroleum product.

1.

Short title

This Act may be cited as the Enhanced Supply and Price Reduction Act of 2011 or the Enhanced SPR Act.

2.

Definition

In this Act, the term Secretary means the Secretary of Energy.

3.

Petroleum product reserve

Section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 6234(a)) is amended by striking 1 billion barrels of petroleum products and inserting 1,000,000,000 barrels of petroleum products (including at least 30,000,000 barrels of refined petroleum products).

4.

Sale of oil from the Strategic Petroleum Reserve and acquisition of refined petroleum product

(a)

Initial petroleum sale and replacement

Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary shall— (1)sell, in the amounts and on the schedule described in subsection (b), light grade petroleum from the Strategic Petroleum Reserve and acquire refined petroleum product; (2)deposit the cash proceeds from sales under paragraph (1) into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); and (3)from the cash proceeds deposited pursuant to paragraph (2), withdraw the amount necessary to pay for the direct administrative and operational costs of the sale and acquisition, including for acquisition and maintenance of, and improvements to, storage facilities. (b)

Amounts and schedule

(1)

In general

The sale and acquisition described in subsection (a) shall require the offer for sale of a total quantity of not less than 30,000,000 barrels of light grade petroleum from the Strategic Petroleum Reserve. The sale shall commence not later than 180 days after the date of enactment of this Act and be completed not later than 3 years after such date of enactment. In no event shall the Secretary sell barrels of oil under subsection (a) that would result in a Strategic Petroleum Reserve that contains fewer than 90 percent of the total amount of barrels in the Strategic Petroleum Reserve as of the date of enactment of this Act. (2)

Acquisitions

The Secretary shall acquire refined petroleum product under this section— (A)beginning no sooner than 180 days after the date of enactment of this Act; (B)ending no later than 5 years after the date of enactment of this Act; and (C)in a manner so as to minimize both the cost to the Federal Government and market disruption associated with the acquisition.

5.

Report to Congress

Not later than 18 months after the date of enactment of this Act, the Secretary shall transmit to Congress a report— (1)describing the amounts of light grade petroleum sold and refined petroleum product acquired under this Act; (2)describing the actions taken for the storage of refined petroleum product acquired under this Act, and identifying any requirements for additional facilities; (3)describing efforts the Department has taken to ensure that distributors and importers are not discouraged from maintaining and increasing supplies of refined petroleum products; (4)describing actions that the Department has taken and plans to take to ensure quality of refined petroleum product in the Reserve, including the rotation of product stored; and (5)analyzing the effects that activities under this Act have had on oil markets.