1.This Act may be cited as the
Taxpayer and Gas Price Relief Act of
2011
.
2.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.
<enum>I</enum><header>Denial of certain
tax benefits to major integrated oil companies</header>
<section display-inline="no-display-inline" id="H19A0056485264D50BED3AA6BD484E8A3" section-type="subsequent-section"><enum>101.</enum><header>Deduction for income
attributable to domestic production activities not allowed with respect to oil
and gas activities of major integrated oil companies</header>
<subsection id="HF79BEAA2E4764F6FB8F1E6ABA6A90DC8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, and</quote>, and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HFA4A1DAE45FE4F7987CE770E4F3EE993" style="OLC">
<clause id="H63985F958C0140CFA1879611FE5A009C"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3713AF7741D74F5099933B201B76E73B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H8338E3CE0E464475959ED75697A368FD" section-type="subsequent-section"><enum>102.</enum><header>Major integrated oil
companies ineligible for last-in, first-out method of inventory</header>
<subsection id="H8B9C9D5565E04CD2A8E014B242C5B75C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HB6A2178678B1487C82CE1425535567D2" style="OLC">
<subsection id="HFA828A6720FD4D9DBCDC911B2F0FB4D4"><enum>(c)</enum><header>Major integrated
oil companies ineligible for last-In, first-Out method</header><text display-inline="yes-display-inline">In the case of a major integrated oil
company (as defined in section 167(h)(5)(B))—</text>
<paragraph id="H7E7D455600D045D5ABE551FEE0F377CC"><enum>(1)</enum><text>the last-in,
first-out method of determining inventories shall in no event be treated as
clearly reflecting income, and</text>
</paragraph><paragraph id="HD2F43BDBE9AE452BADFAC1BE13FDC611"><enum>(2)</enum><text>sections 472 and
473 shall not
apply.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7FD4B4DDB2B04AA79DE127B946BEC937"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="HB37DA401B43B47088D71A10A5D8013E9"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H8B18FFD3732E4C3BB06ACE9047D833EE"><enum>(2)</enum><header>Change in method
of accounting</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H4A6F2D9FD5FF4B1791F5DE708908DF09"><enum>(A)</enum><text>such change shall
be treated as initiated by the taxpayer,</text>
</subparagraph><subparagraph id="H645DDA3B22244218A739E9EE58A08707"><enum>(B)</enum><text>such change shall
be treated as made with the consent of the Secretary of the Treasury,
and</text>
</subparagraph><subparagraph id="H54080990C6514894956EFDAA35BF7AB5"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph></subsection></section><section id="H6FBF88F88BF5400BB0DAFB57A742304A"><enum>103.</enum><header>Limitation on
deduction for intangible drilling and development costs of major integrated oil
companies in the case of oil and gas wells</header>
<subsection commented="no" display-inline="no-display-inline" id="HC7AC5B008D0442918CFA88456CD86BDC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (c) of
<external-xref legal-doc="usc" parsable-cite="usc/26/263">section
263</external-xref> of the Internal Revenue Code of 1986 is amended by adding
at the end the following new sentence: <quote>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.</quote>.</text>
</subsection><subsection id="HD6558957128D4C8BACBFCDDE57712193"><enum>(b)</enum><header>Conforming
amendment</header><text>Subsection (c) of section 263 of such Code is amended
by inserting <quote>(determined without regard to the last sentence of this
subsection)</quote> after <quote>in the same manner as such expenses are
deductible in the case of oil and gas wells</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H74FF390210F042A9B7A1A1EBDC18A3A0"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><enum>II</enum><header>Deficit reduction
through fair oil royalties</header>
<section id="H69B36AA57EA24382A1A3732D04D79B37" section-type="subsequent-section"><enum>201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Deficit Reduction Through Fair
Oil Royalties Act</short-title></quote> .</text>
</section><section id="H9347577CC70C40E8B59E2F1EEBE1D29A"><enum>202.</enum><header>Eligibility for
new leases and the transfer of leases</header>
<subsection id="H42AFE6F37B4044D195DDC1AF33810D54"><enum>(a)</enum><header>Issuance of New
Leases</header>
<paragraph id="HB85625713A294BA6AAAF96B3E56497AC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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)).</text>
</paragraph><paragraph id="H5173EF6F4C924A58AED8F38B03135479"><enum>(2)</enum><header>Persons
described</header><text>A person referred to in paragraph (1) is a person
that—</text>
<subparagraph id="H7FB36ED62D4548BC83C642E642067E97"><enum>(A)</enum><text>is a lessee
that—</text>
<clause id="H01D25A6C224646909EE8F6156BA35CF1"><enum>(i)</enum><text>holds a covered
lease on the date on which the Secretary considers the issuance of the new
lease; or</text>
</clause><clause id="H0742522BC8C3465CB1D5DDCAAAFA08B4"><enum>(ii)</enum><text>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</text>
</clause></subparagraph><subparagraph id="H5F99D2705D5E46D99D59014D02869791"><enum>(B)</enum><text>any other person
that has any direct or indirect interest in, or that derives any benefit from,
a covered lease.</text>
</subparagraph></paragraph><paragraph id="H84A697D83C2548C999FCFD7F08C4A138"><enum>(3)</enum><header>Multiple
lessees</header>
<subparagraph id="HD6D0ED563B2A4ADF87DD9832F1F98D0B"><enum>(A)</enum><header>In
general</header><text>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)).</text>
</subparagraph><subparagraph id="H9AC9A78314FE4CECA87513A41880DDF6"><enum>(B)</enum><header>Treatment of
share as covered lease</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="HFA34D08108064399B57943ACA4E2DEE9"><enum>(b)</enum><header>Transfers</header><text>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—</text>
<paragraph id="H87A754DA7D2141339D8EFC87549DC488"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="HC66D52D055654B4B913F6A209CDEE665"><enum>(2)</enum><text display-inline="yes-display-inline">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)).</text>
</paragraph></subsection><subsection id="HF007B8946A7F4896BF6CB427E39C6065"><enum>(c)</enum><header>Use of amounts
for deficit reduction</header><text>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.</text>
</subsection><subsection id="H128D56CDA9FA424A8B86283F96388A35"><enum>(d)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph id="H352C0E77083543C7B7C7265ABE149D24"><enum>(1)</enum><header>Covered
lease</header><text>The term <term>covered lease</term> means a lease for oil
or gas production in the Gulf of Mexico that is—</text>
<subparagraph id="H0239319BE2314666891F2A5B96565099"><enum>(A)</enum><text>in existence on
the date of enactment of this Act;</text>
</subparagraph><subparagraph id="H4CD60D82D35B45498E0451ACD9E4B550"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H3D364EE956FD437AA4CD2CADD8D47769"><enum>(C)</enum><text>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)).</text>
</subparagraph></paragraph><paragraph id="HBBDC14B56B73494E90DD94E1824837CF"><enum>(2)</enum><header>Lessee</header><text>The
term <term>lessee</term> includes any person or other entity that controls, is
controlled by, or is in or under common control with, a lessee.</text>
</paragraph><paragraph id="H4FCF6FF291EB41A3B47A72FF0FCA6EE7"><enum>(3)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Interior.</text>
</paragraph></subsection></section><section id="H1EC57873048D43B39B31C64F22E79C9E"><enum>203.</enum><header>Price
thresholds for royalty suspension provisions</header><text display-inline="no-display-inline">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.</text>
</section><enum>III</enum><header>Protection from
price gouging</header>
<section commented="no" id="HD51802BBFF134F438A483CCD027494BB" section-type="subsequent-section"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Federal Price Gouging
Prevention Act</short-title></quote>.</text>
</section><section id="HE3A72DA59A794F5BBAB2E6052D16F0BB" section-type="subsequent-section"><enum>302.</enum><header>Unconscionable
pricing of gasoline and other petroleum distillates during emergencies</header>
<subsection id="HDA83D42D12BA494CB1CFD578840FC3E4"><enum>(a)</enum><header>Unconscionable
pricing</header>
<paragraph id="HB69556CD87A84FC3A30FB4C30D275B5A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HC256681D55B14358A4D4A8828B54B3CD"><enum>(A)</enum><text>is unconscionably
excessive; and</text>
</subparagraph><subparagraph id="H711611B9D0BA40C5BB72179CE10C1E2C"><enum>(B)</enum><text>indicates the
seller is taking unfair advantage of the circumstances related to an
international crisis to increase prices unreasonably.</text>
</subparagraph></paragraph><paragraph id="H75E000AD12A34A2BA82F036DDE079CF5"><enum>(2)</enum><header>Energy emergency
proclamation</header>
<subparagraph commented="no" id="HFAED5BF1338841C9A018B9C7CD854637"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="HFA3049AF2718461FAE0CB2B1F6051748"><enum>(B)</enum><header>Duration</header><text display-inline="yes-display-inline">The proclamation—</text>
<clause commented="no" id="H49C0A4F3BF144F35AFD391893D798FD5"><enum>(i)</enum><text>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</text>
</clause><clause commented="no" id="HFFD4FFFD606C4EFF88BF130A4F4A80A5"><enum>(ii)</enum><text>may include a
period of time not to exceed 1 week preceding a reasonably foreseeable
emergency.</text>
</clause></subparagraph></paragraph><paragraph id="HB1E9AC990A12442D9F9CA2B7F5365C7F"><enum>(3)</enum><header>Factors
considered</header><text>In determining whether a person has violated paragraph
(1), there shall be taken into account, among other factors—</text>
<subparagraph commented="no" id="H371BD2E37DEE461BBB93D54432D0B4CC"><enum>(A)</enum><text display-inline="yes-display-inline">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—</text>
<clause commented="no" id="H02F067EFD2B74F1D9DCB931B9D40B4C7"><enum>(i)</enum><text>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;</text>
</clause><clause commented="no" id="HD9F5127206C14B8BBA3D4CCA502504F2"><enum>(ii)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" id="H1BC0334635A946F8BF03D4B9ECEB66CF"><enum>(iii)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" id="H78BF4F1F07BE4BA28B98BBB221F6C2D3"><enum>(iv)</enum><text display-inline="yes-display-inline">was substantially attributable to local,
regional, national, or international market conditions; and</text>
</clause></subparagraph><subparagraph commented="no" id="H10BDCD0DF49F405184DC3A0C7DCEBEF8"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection id="HF6A55D87C75D4B9B95567B5D94A4EE41"><enum>(b)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="H5749D619C04044048E052105AEE22C3A"><enum>(1)</enum><text>the term
<term>wholesale</term>, 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</text>
</paragraph><paragraph id="H322D47CB5F964E9EB7A42C1A38431FE0"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>retail</term>, 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.</text>
</paragraph></subsection></section><section id="H68FEEBE190E94BA399E2A7C962C01405"><enum>303.</enum><header>Enforcement by
the Federal Trade Commission</header>
<subsection id="HA599B39C54024993AA20002D28E1FFEB"><enum>(a)</enum><header>Enforcement by
FTC</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HBE5BFBDA07CA4DFA852EFE5DC64196C2"><enum>(b)</enum><header>Civil
penalties</header>
<paragraph id="H4A823AF5E83B485A980A107587B4D63D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H5B9734274C9349C5B140AA66C98E5990"><enum>(A)</enum><text>a civil penalty of
not more than 3 times the amount of profits gained by such person through such
violation; or</text>
</subparagraph><subparagraph id="HE6CB8D372AB2489E80C6B116A30F9903"><enum>(B)</enum><text>a civil penalty of
not more than $100,000,000.</text>
</subparagraph></paragraph><paragraph id="HBA78292279274B51B47B89EE5CCB7B08"><enum>(2)</enum><header>Method</header><text>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).</text>
</paragraph><paragraph id="HB589F28DBC004A6F85176A4785E4CA7A"><enum>(3)</enum><header>Multiple
offenses; mitigating factors</header><text>In assessing the penalty provided by
subsection (a)—</text>
<subparagraph id="HE7DED55E6ECF41449CD9C619D0751867"><enum>(A)</enum><text>each day of a
continuing violation shall be considered a separate violation; and</text>
</subparagraph><subparagraph id="H66D4A8FFA6C44BC898BB05A6C238387A"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection></section><section id="HE1A4EAB6BEB649DC8B37EF7D759B0198"><enum>304.</enum><header>Criminal
penalties</header>
<subsection id="H22E109A692B3483DBF8463D696E4B4B7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HEF6BE2A8ACAD47C9AAD116E7DC34E139"><enum>(b)</enum><header>Enforcement</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section commented="no" id="HE969DBD49B4A456ABED24EEFF44BAA10"><enum>305.</enum><header>Enforcement at
retail level by State attorneys general</header>
<subsection commented="no" id="H287764632EDC498C88C8FB648337174A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H6DE7173A43974DE990B8ED3524EB4F33"><enum>(b)</enum><header>Notice</header><text>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.</text>
</subsection><subsection commented="no" id="HEECBD358525049AA9B52BB4EE08515F4"><enum>(c)</enum><header>Authority To
intervene</header><text>Upon receiving the notice required by subsection (b),
the Federal Trade Commission may intervene in such civil action and upon
intervening—</text>
<paragraph commented="no" id="H5017517416C443D3BCB32542283A7E04"><enum>(1)</enum><text>be heard on all
matters arising in such civil action; and</text>
</paragraph><paragraph commented="no" id="H024B9DF0A64148189308E89E59A238B1"><enum>(2)</enum><text>file petitions for
appeal of a decision in such civil action.</text>
</paragraph></subsection><subsection commented="no" id="H001960B6A8C44E5BA595B106D20B3D42"><enum>(d)</enum><header>Construction</header><text>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.</text>
</subsection><subsection commented="no" id="H431CADBE94294A2B918D9BE9BCEE46B7"><enum>(e)</enum><header>Venue; service
of process</header><text>In a civil action brought under subsection (a)—</text>
<paragraph commented="no" id="H6E01E49589EA4AAEA3B6E662BAEED36B"><enum>(1)</enum><text>the venue shall be
a judicial district in which—</text>
<subparagraph commented="no" id="H8C75CB6B521A42EB84CDE00E6F31A13B"><enum>(A)</enum><text>the defendant
operates;</text>
</subparagraph><subparagraph commented="no" id="H63761E0838BA4D509183CE8F7279BADC"><enum>(B)</enum><text>the defendant was
authorized to do business; or</text>
</subparagraph><subparagraph commented="no" id="H15B19763E7BF4456BC7F82DED1116B95"><enum>(C)</enum><text>the defendant in
the civil action is found;</text>
</subparagraph></paragraph><paragraph commented="no" id="HFDB1910166904375A21CA22829CDC885"><enum>(2)</enum><text>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</text>
</paragraph><paragraph commented="no" id="H5114D7F62B8C40D0939BA5F514636B7F"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection commented="no" id="H0B94B14E226C4A83B8829ABF6634F63C"><enum>(f)</enum><header>Limitation on
State action while Federal action is pending</header><text>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.</text>
</subsection><subsection commented="no" id="HA3749CB180314927A94085E16344DC5E"><enum>(g)</enum><header>Enforcement of
State Law</header><text>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.</text>
</subsection></section><section id="HACCD024D842043D69069EF1839DAD40E"><enum>306.</enum><header>Effect on other
laws</header>
<subsection id="HFFEA51D4699041AD81E1A0C3B5C7D596"><enum>(a)</enum><header>Other authority
of Federal Trade Commission</header><text>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.</text>
</subsection><subsection id="HA0049D005204426E8E841696377BFAC4"><enum>(b)</enum><header>State
law</header><text>Nothing in this title preempts any State law.</text>
</subsection></section><enum>IV</enum><header>Strategic
Petroleum Reserve</header>
<section id="H2D96DDDA4A8B4E9DB31CB0ABCC77A71E"><enum>401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Enhanced Supply and Price
Reduction Act of 2011</short-title></quote> or the <quote><short-title>Enhanced SPR Act</short-title></quote>.</text>
</section><section id="H9AA9D6519F604952ADFFAC2C091CB578"><enum>402.</enum><header>Definition</header><text display-inline="no-display-inline">In this title, the term
<term>Secretary</term> means the Secretary of Energy.</text>
</section><section id="H182A2708D01C491B96CCCB0A0C7C54A3"><enum>403.</enum><header>Petroleum
product reserve</header><text display-inline="no-display-inline">Section 154(a)
of the Energy Policy and Conservation Act (42 U.S.C. 6234(a)) is amended by
striking <quote>1 billion barrels of petroleum products</quote> and inserting
<quote>1,000,000,000 barrels of petroleum products (including refined petroleum
products)</quote>.</text>
</section><section id="HEB166F5FFAFF4DA1AFC18D521C38D60F"><enum>404.</enum><header>Sale of oil
from the Strategic Petroleum Reserve and acquisition of refined petroleum
product</header>
<subsection id="H1FB5F756F2554F49A2EE33BC0FDD8B02"><enum>(a)</enum><header>Initial
Petroleum Sale and Replacement</header>
<paragraph id="H4799951039744A0FB6F045439BCC6B68"><enum>(1)</enum><header>Authority</header><text>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.</text>
</paragraph><paragraph id="H7C1AC0C5B8F546848736FEF17DE1C300"><enum>(2)</enum><header>Proceeds</header><text>If
the Secretary acts pursuant to paragraph (1), the Secretary shall—</text>
<subparagraph id="H3EA3D2AD8C7147349807344EE9BD43E3"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H246FBC97831A404EB4E62FA8347F8B03"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="HF5C930A4D250495384DCA945AD84620E"><enum>(b)</enum><header>Amounts and
Schedule</header>
<paragraph id="H66023E37B9424D7893392F56A3DA0379"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H42903F993ABA4C119E5EAA6900A1084C"><enum>(2)</enum><header>Acquisitions</header><text>If
the Secretary acts pursuant to subsection (a)(1), the Secretary shall acquire
refined petroleum product under this section—</text>
<subparagraph id="HA1C40A8795C146D2BE2079E35E895E50"><enum>(A)</enum><text>beginning no
sooner than 180 days after the date of enactment of this Act;</text>
</subparagraph><subparagraph id="H96542B6B7A2E4FBD95C1B8C555BF126A"><enum>(B)</enum><text>ending no later
than 5 years after the date of enactment of this Act; and</text>
</subparagraph><subparagraph id="HD953238812B3408EBFCE1CD9D48B8C9B"><enum>(C)</enum><text>in a manner so as
to minimize both the cost to the Federal Government and market disruption
associated with the acquisition.</text>
</subparagraph></paragraph></subsection></section><section id="H10F793BB91774F2E9FF60F77A650DA13"><enum>405.</enum><header>Report to
Congress</header><text display-inline="no-display-inline">Not later than 18
months after the commencement of any sale authorized pursuant to section 404,
the Secretary shall transmit to Congress a report—</text>
<paragraph id="H9F185DD613014763A9DB3A849963A98D"><enum>(1)</enum><text display-inline="yes-display-inline">describing the amounts and types of
petroleum sold and refined petroleum product acquired under section 404;</text>
</paragraph><paragraph id="H3D26CB2346D04BB189EF34574B690397"><enum>(2)</enum><text display-inline="yes-display-inline">describing the actions taken for the
storage of refined petroleum product acquired under section 404, and
identifying any requirements for additional facilities;</text>
</paragraph><paragraph id="H001F558DF900473B8AF21039475B95BB"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H69EB9F071901452584F9DF26512C4AB6"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="HA70348A97EE64DB592C8EA55C9BAB4FF"><enum>(5)</enum><text display-inline="yes-display-inline">analyzing the effects that activities under
section 404 have had on oil markets.</text>
</paragraph></section><section id="HDEEDA86081A64C4B8D3A7D3CF386A47C" section-type="subsequent-section"><enum>406.</enum><header>Strategic Petroleum
Reserve drawdown and exchange in public interest</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H723F0FE81FA64774837197CFCBC17A2D" style="OLC">
<subsection id="H198F4C3AC8024E31A869FC131269F603"><enum>(k)</enum><header>Public
interest</header>
<paragraph id="H669134F407CF401D98FFE494F6108FCC"><enum>(1)</enum><header>General
Authority</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H22CD5FF096C942858E7D4EF5A6EF7D15"><enum>(2)</enum><header>Limitations</header><text>Petroleum
product from the Reserve may not be drawn down or exchanged under this
subsection—</text>
<subparagraph id="HE81C9C178B1343AB8ECA5A487296D743"><enum>(A)</enum><text>in excess of an
aggregate of 30,000,000 barrels with respect to each circumstance warranting a
finding under paragraph (1); or</text>
</subparagraph><subparagraph id="H40B33D0EEF0947FFAFB3D1A8B3C6B108"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HC9D33A12B20F469CB59E052234B88C00"><enum>(3)</enum><header>Report to
Congress</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H5C6BC190F9864E808D715346DD32140B"><enum>(4)</enum><header>Replenishment</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section>