[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1748 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1748

    To provide consumers relief from high gas prices, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2011

   Mr. Bishop of New York (for himself, Mr. Markey, Ms. Chu, and Mr. 
    Larson of Connecticut) introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
the Committees on Ways and Means and Natural Resources, 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 consumers relief from high gas prices, 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 ``Taxpayer and Gas Price Relief Act of 
2011''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
    TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL 
                               COMPANIES

Sec. 101. Deduction for income attributable to domestic production 
                            activities not allowed with respect to oil 
                            and gas activities of major integrated oil 
                            companies.
Sec. 102. Major integrated oil companies ineligible for last-in, first-
                            out method of inventory.
Sec. 103. Limitation on deduction for intangible drilling and 
                            development costs of major integrated oil 
                            companies in the case of oil and gas wells.
         TITLE II--DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES

Sec. 201. Short title.
Sec. 202. Eligibility for new leases and the transfer of leases.
Sec. 203. Price thresholds for royalty suspension provisions.
                TITLE III--PROTECTION FROM PRICE GOUGING

Sec. 301. Short title.
Sec. 302. Unconscionable pricing of gasoline and other petroleum 
                            distillates during emergencies.
Sec. 303. Enforcement by the Federal Trade Commission.
Sec. 304. Criminal penalties.
Sec. 305. Enforcement at retail level by State attorneys general.
Sec. 306. Effect on other laws.
                 TITLE IV--STRATEGIC PETROLEUM RESERVE

Sec. 401. Short title.
Sec. 402. Definition.
Sec. 403. Petroleum product reserve.
Sec. 404. Sale of oil from the Strategic Petroleum Reserve and 
                            acquisition of refined petroleum product.
Sec. 405. Report to Congress.
Sec. 406. Strategic Petroleum Reserve drawdown and exchange in public 
                            interest.

    TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL 
                               COMPANIES

SEC. 101. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
              ACTIVITIES NOT ALLOWED WITH RESPECT TO OIL AND GAS 
              ACTIVITIES OF MAJOR INTEGRATED OIL COMPANIES.

    (a) In General.--Subparagraph (B) of section 199(c)(4) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting ``, and'', and by inserting after clause (iii) the following 
new clause:
                            ``(iv) in the case of a major integrated 
                        oil company (as defined in section 167(h)(5)), 
                        the production, refining, processing, 
                        transportation, or distribution of oil, gas, or 
                        any primary product thereof.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 102. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE FOR LAST-IN, FIRST-
              OUT METHOD OF INVENTORY.

    (a) In General.--Section 471 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (c) as subsection (d) and by 
inserting after subsection (b) the following new subsection:
    ``(c) Major Integrated Oil Companies Ineligible for Last-In, First-
Out Method.--In the case of a major integrated oil company (as defined 
in section 167(h)(5)(B))--
            ``(1) the last-in, first-out method of determining 
        inventories shall in no event be treated as clearly reflecting 
        income, and
            ``(2) sections 472 and 473 shall not apply.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Change in method of accounting.--In the case of any 
        taxpayer required by the amendments made by this section to 
        change its method of accounting for its first taxable year 
        beginning after the date of the enactment of this Act--
                    (A) such change shall be treated as initiated by 
                the taxpayer,
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury, and
                    (C) if the net amount of the adjustments required 
                to be taken into account by the taxpayer under section 
                481 of the Internal Revenue Code of 1986 is positive, 
                such amount shall be taken into account over a period 
                of 8 years beginning with such first taxable year.

SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS OF MAJOR INTEGRATED OIL COMPANIES IN 
              THE CASE OF OIL AND GAS WELLS.

    (a) In General.--Subsection (c) of section 263 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
sentence: ``This subsection shall not apply to intangible drilling and 
development costs paid or incurred by any major integrated oil company 
(as defined in section 167(h)(5)) in the case of oil and gas wells.''.
    (b) Conforming Amendment.--Subsection (c) of section 263 of such 
Code is amended by inserting ``(determined without regard to the last 
sentence of this subsection)'' after ``in the same manner as such 
expenses are deductible in the case of oil and gas wells''.
    (c) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after the date 
of the enactment of this Act.

         TITLE II--DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Deficit Reduction Through Fair Oil 
Royalties Act''.

SEC. 202. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.

    (a) Issuance of New Leases.--
            (1) In general.--The Secretary shall not issue any new 
        lease that authorizes the production of oil or natural gas 
        under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
        seq.) to a person described in paragraph (2) unless the person 
        has renegotiated each covered lease with respect to which the 
        person is a lessee, to modify the payment responsibilities of 
        the person to require the payment of royalties if the price of 
        oil and natural gas is greater than or equal to the price 
        thresholds described in clauses (v) through (vii) of section 
        8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)).
            (2) Persons described.--A person referred to in paragraph 
        (1) is a person that--
                    (A) is a lessee that--
                            (i) holds a covered lease on the date on 
                        which the Secretary considers the issuance of 
                        the new lease; or
                            (ii) was issued a covered lease before the 
                        date of enactment of this Act, but transferred 
                        the covered lease to another person or entity 
                        (including a subsidiary or affiliate of the 
                        lessee) after the date of enactment of this 
                        Act; or
                    (B) any other person that has any direct or 
                indirect interest in, or that derives any benefit from, 
                a covered lease.
            (3) Multiple lessees.--
                    (A) In general.--For purposes of paragraph (1), if 
                there are multiple lessees that own a share of a 
                covered lease, the Secretary may implement separate 
                agreements with any lessee with a share of the covered 
                lease that modifies the payment responsibilities with 
                respect to the share of the lessee to include price 
                thresholds that are equal to or less than the price 
                thresholds described in clauses (v) through (vii) of 
                section 8(a)(3)(C) of the Outer Continental Shelf Lands 
                Act (43 U.S.C. 1337(a)(3)(C)).
                    (B) Treatment of share as covered lease.--Beginning 
                on the effective date of an agreement under 
                subparagraph (A), any share subject to the agreement 
                shall not constitute a covered lease with respect to 
                any lessees that entered into the agreement.
    (b) Transfers.--A lessee or any other person who has any direct or 
indirect interest in, or who derives a benefit from, a lease shall not 
be eligible to obtain by sale or other transfer (including through a 
swap, spinoff, servicing, or other agreement) any covered lease, the 
economic benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), unless the lessee 
or other person has--
            (1) renegotiated each covered lease with respect to which 
        the lessee or person is a lessee, to modify the payment 
        responsibilities of the lessee or person to include price 
        thresholds that are equal to or less than the price thresholds 
        described in clauses (v) through (vii) of section 8(a)(3)(C) of 
        the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)); or
            (2) entered into an agreement with the Secretary to modify 
        the terms of all covered leases of the lessee or other person 
        to include limitations on royalty relief based on market prices 
        that are equal to or less than the price thresholds described 
        in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
    (c) Use of Amounts for Deficit Reduction.--Notwithstanding any 
other provision of law, any amounts received by the United States as 
rentals or royalties under covered leases shall be deposited in the 
Treasury and used for Federal budget deficit reduction or, if there is 
no Federal budget deficit, for reducing the Federal debt in such manner 
as the Secretary of the Treasury considers appropriate.
    (d) Definitions.--In this section--
            (1) Covered lease.--The term ``covered lease'' means a 
        lease for oil or gas production in the Gulf of Mexico that is--
                    (A) in existence on the date of enactment of this 
                Act;
                    (B) issued by the Department of the Interior under 
                section 304 of the Outer Continental Shelf Deep Water 
                Royalty Relief Act (43 U.S.C. 1337 note; Public Law 
                104-58); and
                    (C) not subject to limitations on royalty relief 
                based on market price that are equal to or less than 
                the price thresholds described in clauses (v) through 
                (vii) of section 8(a)(3)(C) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).
            (2) Lessee.--The term ``lessee'' includes any person or 
        other entity that controls, is controlled by, or is in or under 
        common control with, a lessee.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 203. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.

    The Secretary of the Interior shall agree to a request by any 
lessee to amend any lease issued for any Central and Western Gulf of 
Mexico tract in the period of January 1, 1996, through November 28, 
2000, to incorporate price thresholds applicable to royalty suspension 
provisions, that are equal to or less than the price thresholds 
described in clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). Any 
amended lease shall impose the new or revised price thresholds 
effective October 1, 2011. Existing lease provisions shall prevail 
through September 30, 2011.

                TITLE III--PROTECTION FROM PRICE GOUGING

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Federal Price Gouging Prevention 
Act''.

SEC. 302. UNCONSCIONABLE PRICING OF GASOLINE AND OTHER PETROLEUM 
              DISTILLATES DURING EMERGENCIES.

    (a) Unconscionable Pricing.--
            (1) In general.--It shall be unlawful for any person to 
        sell, at wholesale or at retail in an area and during a period 
        of an international crisis affecting the oil markets proclaimed 
        under paragraph (2), gasoline or any other petroleum distillate 
        covered by a proclamation issued under paragraph (2) at a price 
        that--
                    (A) is unconscionably excessive; and
                    (B) indicates the seller is taking unfair advantage 
                of the circumstances related to an international crisis 
                to increase prices unreasonably.
            (2) Energy emergency proclamation.--
                    (A) In general.--The President may issue a 
                proclamation of an international crisis affecting the 
                oil markets and may designate any area within the 
                jurisdiction of the United States, where the 
                prohibition in paragraph (1) shall apply. The 
                proclamation shall state the geographic area covered, 
                the gasoline or other petroleum distillate covered, and 
                the time period that such proclamation shall be in 
                effect.
                    (B) Duration.--The proclamation--
                            (i) may not apply for a period of more than 
                        30 consecutive days, but may be renewed for 
                        such consecutive periods, each not to exceed 30 
                        days, as the President determines appropriate; 
                        and
                            (ii) may include a period of time not to 
                        exceed 1 week preceding a reasonably 
                        foreseeable emergency.
            (3) Factors considered.--In determining whether a person 
        has violated paragraph (1), there shall be taken into account, 
        among other factors--
                    (A) whether the amount charged by such person for 
                the applicable gasoline or other petroleum distillate 
                at a particular location in an area covered by a 
                proclamation issued under paragraph (2) during the 
                period such proclamation is in effect--
                            (i) grossly exceeds the average price at 
                        which the applicable gasoline or other 
                        petroleum distillate was offered for sale by 
                        that person during the 30 days prior to such 
                        proclamation;
                            (ii) grossly exceeds the price at which the 
                        same or similar gasoline or other petroleum 
                        distillate was readily obtainable in the same 
                        area from other competing sellers during the 
                        same period;
                            (iii) reasonably reflected additional 
                        costs, not within the control of that person, 
                        that were paid, incurred, or reasonably 
                        anticipated by that person, or reflected 
                        additional risks taken by that person to 
                        produce, distribute, obtain, or sell such 
                        product under the circumstances; and
                            (iv) was substantially attributable to 
                        local, regional, national, or international 
                        market conditions; and
                    (B) whether the quantity of gasoline or other 
                petroleum distillate the person produced, distributed, 
                or sold in an area covered by a proclamation issued 
                under paragraph (2) during a 30-day period following 
                the issuance of such proclamation increased over the 
                quantity that that person produced, distributed, or 
                sold during the 30 days prior to such proclamation, 
                taking into account usual seasonal demand variations.
    (b) Definitions.--As used in this section--
            (1) the term ``wholesale'', with respect to sales of 
        gasoline or other petroleum distillates, means either truckload 
        or smaller sales of gasoline or petroleum distillates where 
        title transfers at a product terminal or a refinery, and dealer 
        tank wagon sales of gasoline or petroleum distillates priced on 
        a delivered basis to retail outlets; and
            (2) the term ``retail'', with respect to sales of gasoline 
        or other petroleum distillates, includes all sales to end users 
        such as motorists as well as all direct sales to other end 
        users such as agriculture, industry, residential, and 
        commercial consumers.

SEC. 303. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Enforcement by FTC.--A violation of section 302 shall be 
treated as a violation of a rule defining an unfair or deceptive act or 
practice prescribed under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission 
shall enforce this title in the same manner, by the same means, and 
with the same jurisdiction as though all applicable terms and 
provisions of the Federal Trade Commission Act were incorporated into 
and made a part of this title. In enforcing section 302 of this title, 
the Commission shall give priority to enforcement actions concerning 
companies with total United States wholesale or retail sales of 
gasoline and other petroleum distillates in excess of $10,000,000,000 
per year.
    (b) Civil Penalties.--
            (1) In general.--Notwithstanding the penalties set forth 
        under the Federal Trade Commission Act, any person who violates 
        section 302 with actual knowledge or knowledge fairly implied 
        on the basis of objective circumstances shall be subject to--
                    (A) a civil penalty of not more than 3 times the 
                amount of profits gained by such person through such 
                violation; or
                    (B) a civil penalty of not more than $100,000,000.
            (2) Method.--The penalties provided by paragraph (1) shall 
        be obtained in the same manner as civil penalties obtained 
        under section 5 of the Federal Trade Commission Act (15 U.S.C. 
        45).
            (3) Multiple offenses; mitigating factors.--In assessing 
        the penalty provided by subsection (a)--
                    (A) each day of a continuing violation shall be 
                considered a separate violation; and
                    (B) the court shall take into consideration, among 
                other factors, the seriousness of the violation and the 
                efforts of the person committing the violation to 
                remedy the harm caused by the violation in a timely 
                manner.

SEC. 304. CRIMINAL PENALTIES.

    (a) In General.--In addition to any penalty applicable under 
section 303, any person who violates section 302 shall be fined under 
title 18, United States Code, in an amount not to exceed $500,000,000.
    (b) Enforcement.--The criminal penalty provided by subsection (a) 
may be imposed only pursuant to a criminal action brought by the 
Attorney General or other officer of the Department of Justice. The 
Attorney General shall give priority to enforcement actions concerning 
companies with total United States wholesale or retail sales of 
gasoline and other petroleum distillates in excess of $10,000,000,000 
per year.

SEC. 305. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.

    (a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce the provisions of section 302 of this 
title, or to impose the civil penalties authorized by section 
303(b)(1)(B), whenever the attorney general of the State has reason to 
believe that the interests of the residents of the State have been or 
are being threatened or adversely affected by a violation of this title 
or a regulation under this title, involving a retail sale.
    (b) Notice.--The State shall serve written notice to the Federal 
Trade Commission of any civil action under subsection (a) prior to 
initiating such civil action. The notice shall include a copy of the 
complaint to be filed to initiate such civil action, except that if it 
is not feasible for the State to provide such prior notice, the State 
shall provide such notice immediately upon instituting such civil 
action.
    (c) Authority To Intervene.--Upon receiving the notice required by 
subsection (b), the Federal Trade Commission may intervene in such 
civil action and upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    (e) Venue; Service of Process.--In a civil action brought under 
subsection (a)--
            (1) the venue shall be a judicial district in which--
                    (A) the defendant operates;
                    (B) the defendant was authorized to do business; or
                    (C) the defendant in the civil action is found;
            (2) process may be served without regard to the territorial 
        limits of the district or of the State in which the civil 
        action is instituted; and
            (3) a person who participated with the defendant in an 
        alleged violation that is being litigated in the civil action 
        may be joined in the civil action without regard to the 
        residence of the person.
    (f) Limitation on State Action While Federal Action Is Pending.--If 
the Federal Trade Commission has instituted a civil action or an 
administrative action for violation of this title, no State attorney 
general, or official or agency of a State, may bring an action under 
this subsection during the pendency of that action against any 
defendant named in the complaint of the Federal Trade Commission or the 
other agency for any violation of this title alleged in the complaint.
    (g) Enforcement of State Law.--Nothing contained in this section 
shall prohibit an authorized State official from proceeding in State 
court to enforce a civil or criminal statute of such State.

SEC. 306. EFFECT ON OTHER LAWS.

    (a) Other Authority of Federal Trade Commission.--Nothing in this 
title shall be construed to limit or affect in any way the Federal 
Trade Commission's authority to bring enforcement actions or take any 
other measure under the Federal Trade Commission Act (15 U.S.C. 41 et 
seq.) or any other provision of law.
    (b) State Law.--Nothing in this title preempts any State law.

                 TITLE IV--STRATEGIC PETROLEUM RESERVE

SEC. 401. SHORT TITLE.

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

SEC. 402. DEFINITION.

    In this title, the term ``Secretary'' means the Secretary of 
Energy.

SEC. 403. 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 refined petroleum products)''.

SEC. 404. SALE OF OIL FROM THE STRATEGIC PETROLEUM RESERVE AND 
              ACQUISITION OF REFINED PETROLEUM PRODUCT.

    (a) Initial Petroleum Sale and Replacement.--
            (1) Authority.--Notwithstanding section 161 of the Energy 
        Policy and Conservation Act (42 U.S.C. 6241), the Secretary may 
        sell, in the amounts and on the schedule described in 
        subsection (b), petroleum from the Strategic Petroleum Reserve 
        and acquire refined petroleum product.
            (2) Proceeds.--If the Secretary acts pursuant to paragraph 
        (1), the Secretary shall--
                    (A) deposit the cash proceeds from sales under 
                subparagraph (A) into the SPR Petroleum Account 
                established under section 167 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6247); and
                    (B) 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) may require the offer for sale of a total 
        quantity of no more than 30,000,000 barrels of petroleum from 
        the Strategic Petroleum Reserve. The sale may commence within 
        180 days after the date of enactment of this Act and may end 
        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.--If the Secretary acts pursuant to 
        subsection (a)(1), 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.

SEC. 405. REPORT TO CONGRESS.

    Not later than 18 months after the commencement of any sale 
authorized pursuant to section 404, the Secretary shall transmit to 
Congress a report--
            (1) describing the amounts and types of petroleum sold and 
        refined petroleum product acquired under section 404;
            (2) describing the actions taken for the storage of refined 
        petroleum product acquired under section 404, and identifying 
        any requirements for additional facilities;
            (3) describing efforts the Department of Energy 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 of Energy 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 section 404 
        have had on oil markets.

SEC. 406. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND EXCHANGE IN PUBLIC 
              INTEREST.

    Section 161 of the Energy Policy and Conservation Act (42 U.S.C. 
6241) is amended by adding at the end the following new subsection:
    ``(k) Public Interest.--
            ``(1) General authority.--If, after consultation with the 
        Secretary of Energy, the Secretary of Defense, and the Chairman 
        of the Federal Trade Commission, the President finds that a 
        circumstance, other than those described in subsections (d) or 
        (h) of this section, exists of such significance and scope that 
        action under this subsection would be warranted to address 
        market manipulation or otherwise be in the public interest, 
        then the President may instruct the Secretary to drawdown and 
        sell or exchange petroleum product from the Reserve under this 
        subsection.
            ``(2) Limitations.--Petroleum product from the Reserve may 
        not be drawn down or exchanged under this subsection--
                    ``(A) in excess of an aggregate of 30,000,000 
                barrels with respect to each circumstance warranting a 
                finding under paragraph (1); or
                    ``(B) in an amount that would lower the aggregate 
                level of petroleum product in the Reserve to less than 
                600,000,000 barrels of petroleum product.
            ``(3) Report to congress.--At the end of any month during 
        which there is a drawdown and sale of petroleum products from 
        the Reserve under this subsection, the Secretary shall transmit 
        a report to the Congress containing an account of the drawdown 
        and sale, along with an assessment of the effects of the 
        drawdown and sale.
            ``(4) Replenishment.--In the case of a drawdown and sale or 
        exchange under this subsection, the Secretary shall provide for 
        the timely replenishment of the Reserve in accordance with the 
        objectives and procedures set forth in section 160.''.
                                 <all>