[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4344-S4345]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5447. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to 
provide for reconciliation pursuant to title II of S. Con. Res. 14; 
which was ordered to lie on the table; as follows:

       At the appropriate place in part 7 of subtitle A of title 
     V, insert the following:

     SEC. 5017_. PRICING PREFERENCE FOR DOMESTIC ENTITIES IN SALE 
                   OF DRAWDOWNS FROM STRATEGIC PETROLEUM RESERVE.

       (a) Definitions.--Section 152 of the Energy Policy and 
     Conservation Act (42 U.S.C. 6232) is amended--
       (1) by striking paragraph (5);
       (2) by redesignating paragraphs (4), (6), (8), (9), (10), 
     and (11) as paragraphs (3), (5), (6), (7), (8), and (9), 
     respectively;
       (3) in each of paragraphs (3) through (9) (as so 
     redesignated), by inserting a paragraph heading, the text of 
     which comprises the term defined in the paragraph;
       (4) by inserting after paragraph (3) (as so redesignated) 
     the following:
       ``(4) Qualified bidder.--The term `qualified bidder' means 
     an individual or entity that--
       ``(A) submits to the Secretary an offer to purchase 
     petroleum products withdrawn from the Reserve and offered for 
     sale pursuant to section 161; and
       ``(B) meets such criteria as the Secretary determines to be 
     appropriate to participate in that sale.''; and
       (5) by striking the section designation and heading and all 
     that follows through ``(2) The term'' and inserting the 
     following:

     ``SEC. 152. DEFINITIONS.

       ``In this part and part C:
       ``(1) Domestic entity.--The term `domestic entity' means a 
     commercial entity that, as determined by the Secretary--
       ``(A) is headquartered in the United States; and
       ``(B) purchases or sells petroleum products in the United 
     States.
       ``(2) Importer.--The term''.
       (b) Pricing Preference for Domestic Entities.--Section 161 
     of the Energy Policy and Conservation Act (42 U.S.C. 6241) is 
     amended--
       (1) in subsection (a), by striking ``the provisions of'';
       (2) in subsection (d)--
       (A) by striking ``(d)(1) Drawdown'' and inserting the 
     following:
       ``(b) Prerequisite Presidential Finding.--
       ``(1) In general.--A drawdown''; and
       (B) in paragraph (2)--
       (i) by striking ``(2) For purposes'' and inserting the 
     following:
       ``(2) Factors for deemed existence.--For purposes''; and
       (ii) by indenting subparagraphs (A) through (C) 
     appropriately;
       (3) in subsection (e)--
       (A) by striking paragraph (2) and inserting the following:
       ``(3) Cancellations.--The Secretary may cancel, in whole or 
     in part, any offer to sell petroleum products as part of any 
     drawdown and sale under this section.''; and
       (B) by striking ``(e)(1) The Secretary'' and all that 
     follows through the end of paragraph (1) and inserting the 
     following:
       ``(c) Procedure for Sales.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall sell petroleum products withdrawn from the Strategic 
     Petroleum Reserve--
       ``(A) at public sale;
       ``(B) after providing public notice of each sale;
       ``(C) for such period as the Secretary considers to be 
     appropriate; and
       ``(D) without regard to Federal, State, or local 
     regulations relating to sales of petroleum products.
       ``(2) Pricing.--The Secretary shall--
       ``(A) establish the price for each sale of petroleum 
     products withdrawn from the Reserve; and
       ``(B) sell the petroleum products to the qualified bidder 
     offering the highest bid, subject to the condition that 
     pricing preference shall be given to qualified bidders that 
     are domestic entities, in accordance with subsection (d).'';
       (4) by inserting after subsection (c) (as so redesignated) 
     the following:
       ``(d) Pricing Preference for Domestic Entities.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, in each sale under this section of petroleum products 
     withdrawn from the Reserve, the Secretary shall provide to 
     qualified bidders that are domestic entities a pricing 
     preference in accordance with paragraph (2).
       ``(2) Mechanism for adjustment.--To provide pricing 
     preference required by paragraph (1) in conducting a sale 
     under this section the Secretary shall, in accordance with 
     subsection (c)--
       ``(A) accept bids from all qualified bidders; but
       ``(B) in evaluating the accepted bids to identify the 
     highest bidder, add to the bid price offered by each 
     qualified bidder that is a domestic entity--
       ``(i) for a domestic entity that is a small business 
     concern (as defined in section 3 of the Small Business Act 
     (15 U.S.C. 632)), an amount equal to the product obtained by 
     multiplying--

       ``(I) the amount of the bid price offered by that domestic 
     entity; and
       ``(II) 15 percent; and

       ``(ii) for a domestic entity that is not a small business 
     concern described in clause (i), an amount equal to the 
     product obtained by multiplying--

       ``(I) the amount of the bid price offered by that domestic 
     entity; and
       ``(II) 10 percent.

       ``(3) Effect of subsection.--Nothing in this subsection--
       ``(A) requires the Secretary to sell petroleum products 
     withdrawn from the Reserve to a domestic entity if the 
     highest bid received from a qualified bidder that is a 
     domestic entity, as adjusted pursuant to paragraph (2), is 
     lower than a bid received from a qualified bidder that is not 
     a domestic entity; or
       ``(B) modifies, supercedes, or otherwise affects the 
     application of, or any requirement under, subsection (h).'';
       (5) in subsection (g)--
       (A) by striking the subsection designation and all that 
     follows through ``Such a'' in the third sentence of paragraph 
     (1) and inserting the following:
       ``(e) Evaluation; Test Drawdowns.--
       ``(1) Evaluation.--The Secretary shall conduct a continuing 
     evaluation of the drawdown and sales procedures under this 
     section, including the application of the pricing preference 
     for domestic entities under subsection (d).
       ``(2) Test drawdowns.--In conducting an evaluation under 
     paragraph (1), the Secretary may carry out a test drawdown 
     and sale or exchange of petroleum products from the Reserve, 
     subject to the condition that such a'';
       (B) in paragraph (4), by inserting ``, subject to the 
     condition that pricing preference may be provided to domestic 
     entities in accordance with subsection (d), as the Secretary

[[Page S4345]]

     determines to be appropriate'' before the period at the end; 
     and
       (C) by indenting paragraph (6) appropriately;
       (6) in subsection (h)(1)--
       (A) by striking the undesignated matter following 
     subparagraph (D);
       (B) by striking ``(h)(1) If'' and inserting the following:
       ``(f) Presidential Finding on Shortages.--
       ``(1) In general.--Subject to paragraph (2) and subsection 
     (d), the Secretary may drawdown and sell petroleum products 
     from the Strategic Petroleum Reserve if'';
       (C) in subparagraph (A), by striking ``subsection (d)'' and 
     inserting ``subsection (b)'';
       (D) by indenting subparagraphs (A) and (B) appropriately; 
     and
       (E) in subparagraph (D), by striking the comma at the end 
     and inserting a period;
       (7) by redesignating subsections (i) and (j) as subsections 
     (g) and (h), respectively; and
       (8) in paragraph (2) of subsection (h) (as so 
     redesignated), in the paragraph heading, by striking ``In 
     general'' and inserting ``State of hawai'i''.
       (c) Technical and Conforming Amendments.--
       (1) Section 154 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6234) is amended--
       (A) by striking subsection (f) and inserting the following:
       ``(c) Drawdown and Distribution.--
       ``(1) In general.--The drawdown and distribution of 
     petroleum products from the Strategic Petroleum Reserve is 
     authorized only in accordance with section 161.
       ``(2) Prohibition.--A drawdown and distribution of 
     petroleum products for purposes other than the objectives 
     described in section 160(b) shall be prohibited.
       ``(3) Request of funds.--
       ``(A) In general.--In the annual budget submission of the 
     Secretary, the Secretary shall request funds for acquisition, 
     transportation, and injection of petroleum products for 
     storage in the Reserve.
       ``(B) No request.--If no request for funds is submitted 
     under subparagraph (A) for a fiscal year, the Secretary shall 
     provide a written explanation of the reasons why no request 
     was submitted.'';
       (B) in subsection (b), by striking ``(b) The Secretary'' 
     and inserting the following:
       ``(b) Authority of Secretary.--The Secretary''; and
       (C) by striking the section designation and heading and all 
     that follows through ``shall be created'' in subsection (a) 
     and inserting the following:

     ``SEC. 154. STRATEGIC PETROLEUM RESERVE.

       ``(a) Establishment.--A Strategic Petroleum Reserve for the 
     storage of up to 1,000,000,000 barrels of petroleum products 
     shall be established''.
       (2) Section 160 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6240) is amended--
       (A) in subsection (b)--
       (i) in the matter preceding paragraph (1)--

       (I) by striking ``following objectives:'' and inserting 
     ``objectives of--''; and
       (II) by striking ``(b) The Secretary shall, to the 
     greatest'' and inserting the following:

       ``(b) Objectives for Acquisitions.--The Secretary shall, to 
     the maximum'';
       (ii) by inserting after paragraph (1) the following:
       ``(2) support of domestic entities by providing pricing 
     preference in accordance with section 161(d);''; and
       (iii) by indenting paragraphs (1), (3), (4), and (5) 
     appropriately;
       (B) in subsection (f)--
       (i) by striking ``the Reserve and may sell'' and inserting 
     the following: ``the Reserve; and
       ``(2) subject to section 161(d), may sell'';
       (ii) by striking ``the Secretary may suspend'' and 
     inserting the following: ``the Secretary--
       ``(1) may suspend''; and
       (iii) by striking ``(f) If the'' and inserting the 
     following:
       ``(d) Imminent Severe Energy Supply Interruptions.--If 
     the'';
       (C) in subsection (h)--
       (i) in paragraph (2)--

       (I) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and indenting the clauses 
     appropriately; and
       (II) in the matter preceding clause (i) (as so 
     redesignated), in the second sentence, by striking ``The 
     price paid by the Secretary--'' and inserting the following:

       ``(B) Price.--The price paid by the Secretary for an 
     acquisition pursuant to this subsection--''; and

       (III) by striking ``(2) Crude oil'' and inserting the 
     following:

       ``(2) Pricing for acquisitions.--
       ``(A) Competitive bid.--Crude oil'';
       (ii) in paragraph (1), by striking the second sentence and 
     inserting the following:
       ``(B) Terms and conditions.--Subject to paragraph (2), the 
     Secretary may establish such terms and conditions for an 
     acquisition pursuant to this subsection as the Secretary 
     determines to be necessary.''; and
       (iii) by striking ``(h)(1) If'' and inserting the 
     following:
       ``(e) Declines in Domestic Oil Production.--
       ``(1) Directed acquisitions.--
       ``(A) In general.--If''; and
       (D) by striking the section designation and heading and all 
     that follows through ``(a) The Secretary'' and inserting the 
     following:

     ``SEC. 160. PETROLEUM PRODUCTS FOR STORAGE IN THE RESERVE.

       ``(a) Authority of Secretary.--The Secretary''.
       (3) Section 167 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6247) is amended--
       (A) in subsection (b)--
       (i) in paragraph (3)--

       (I) by striking ``subsection (g) of such section'' and 
     inserting ``subsection (e) of that section''; and
       (II) by striking ``section 160(f)'' and inserting ``section 
     160(d)'';

       (ii) by redesignating paragraphs (2) and (3) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (iii) in the undesignated matter following subparagraph (B) 
     (as so redesignated), by striking ``Funds'' and inserting the 
     following:
       ``(2) Availability.--Funds''; and
       (iv) by striking ``(b) Amounts'' and inserting the 
     following:
       ``(b) Obligation of Amounts.--
       ``(1) In general.--Amounts''; and
       (B) in subsection (d), in the matter preceding paragraph 
     (1)--
       (i) by striking ``subsection (g) of such section'' and 
     inserting ``subsection (e) of that section''; and
       (ii) by striking ``section 160(f)'' and inserting ``section 
     160(d)''.
       (4) Section 168(a) of the Energy Policy and Conservation 
     Act (42 U.S.C. 6247a(a)) is amended, in the first sentence, 
     by striking ``product owned'' and inserting ``products 
     owned''.
       (5) The table of contents of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 note; Public Law 94-163) is 
     amended by striking the items relating to the second part D 
     of title I (relating to expiration) and the second section 
     181 (relating to expiration).
                                 ______