    [Weekly Compilation of Presidential Documents Volume 41, Number 36 (Monday, September 12, 2005)]
    [Page 1350]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Memorandum on Finding of a Severe Energy Supply Interruption

    September 2, 2005

    Memorandum for the Secretary of Energy, the Secretary of Homeland
    Security

    Subject: Finding of a Severe Energy Supply Interruption

        Recent events in connection with Hurricane Katrina have resulted in
    a ``severe energy supply interruption'' as defined in section 161(d) of
    the Energy Policy and Conservation Act (EPCA), 42 U.S.C. 6241(d). Based
    on the advice of the Secretary of Energy and on other information, I
    find and determine, in accordance with EPCA section 161(d), that a
    severe energy supply interruption exists because:
    (a)         an emergency situation exists and there is a significant
                reduction in supply which is of significant scope and
                duration;
    (b)         a severe increase in the price of petroleum products has
                resulted from such emergency situation; and
    (c)         such price increase is likely to or may cause a major
                adverse impact on the national economy.
        For these reasons, the Secretary of Energy is authorized and
    directed to draw down and sell Strategic Petroleum Reserve petroleum
    pursuant to EPCA section 161 at a rate the Secretary may determine and
    in accordance with the Strategic Petroleum Reserve standard sales
    procedures now in effect. The drawdown and sale authorized and directed
    by this finding will allow the United States to meet its obligations
    under the international energy program. If the Secretary determines the
    circumstances leading to this finding no longer support initiation or
    continuation of a drawdown and sale of petroleum from the Strategic
    Petroleum Reserve, the Secretary is authorized to cancel in whole or in
    part any offer to sell petroleum as a part of any drawdown and sale
    pursuant to this finding.
        The Secretary of Homeland Security already has waived the coastwise
    laws generally for the transportation of petroleum released from the
    Strategic Petroleum Reserve, whether pursuant to an exchange, sale, or
    otherwise, undertaken in response to the circumstances arising from
    Hurricane Katrina, and I direct the Secretary of Homeland Security to
    continue such waiver for the transportation of all petroleum withdrawn
    from the Strategic Petroleum Reserve during the drawdown pursuant to
    this finding.
                                                    George W. Bush

    Note: This item was not received in time for publication in the
    appropriate issue.