[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continue such waiver for the transportation of all petroleum withdrawn 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.