S 1951 IS
106th CONGRESS
1st Session
S. 1951
To provide the Secretary of Energy with authority to draw down the
Strategic Petroleum Reserve when oil and gas prices in the United States rise
sharply because of anticompetitive activity, and to require the President,
through the Secretary of Energy, to consult with Congress regarding the sale of
oil from the Strategic Petroleum Reserve.
IN THE SENATE OF THE UNITED STATES
November 17, 1999
Mr. SCHUMER (for himself and Ms. COLLINS) introduced the following bill;
which was read twice and referred to the Committee on Energy and Natural
Resources
A BILL
To provide the Secretary of Energy with authority to draw down the
Strategic Petroleum Reserve when oil and gas prices in the United States rise
sharply because of anticompetitive activity, and to require the President,
through the Secretary of Energy, to consult with Congress regarding the sale of
oil from the Strategic Petroleum Reserve.
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 `Oil Price Safeguard Act'.
SEC. 2. FINDINGS.
(1) a sharp, sustained increase in the price of crude oil would
negatively affect the overall economic well-being of the United
States;
(2) the United States currently imports roughly 55 percent of its
oil;
(3) heating oil price increases disproportionately harm the poor and the
elderly; and
(4) the global oil market is often greatly influenced by nonmarket-based
supply manipulations, including price fixing and production quotas.
SEC. 3. DRAWDOWN OF STRATEGIC PETROLEUM RESERVE.
Section 161(d) of the Energy Policy and Conservation Act (42 U.S.C.
6241(d)) is amended by adding at the end the following:
`(3) REDUCTION IN SUPPLY CAUSED BY ANTICOMPETITIVE CONDUCT-
`(A) IN GENERAL- For the purposes of this section, in addition to the
circumstances set forth in section 3(8) and in paragraph (2) of this
subsection, a severe energy supply interruption shall be deemed to exist
if the President determines that--
`(i) there is a significant reduction in supply that--
`(I) is of significant scope and duration; and
`(II) has caused a significant increase in the price of petroleum
products;
`(ii) the increase in price is likely to cause a significant adverse
impact on the national economy; and
`(iii) a substantial cause of the reduction in supply is the
anticompetitive conduct of 1 or more foreign countries or international
entities.
`(B) DEPOSIT AND USE OF PROCEEDS- Proceeds from the sale of petroleum
drawn down pursuant to a Presidential determination under subparagraph (A)
shall--
`(i) be deposited in the SPR Petroleum Account; and
`(ii) be used only for the purposes specified in section
167.'.
SEC. 4. REPORTING AND CONSULTATION REQUIREMENTS.
If the price of a barrel of crude oil exceeds $25 (in constant 1999 United
States dollars) for a period greater than 14 days, the President, through the
Secretary of Energy, shall, not later than 30 days after the end of the 14-day
period, submit to the Committee on Energy and Natural Resources of the Senate
and the Committee on Commerce of the House of Representatives a report
that--
(1) states the results of a comprehensive review of the causes and
potential consequences of the price increase;
(2) provides an estimate of the likely duration of the price increase,
based on analyses and forecasts of the Energy Information
Administration;
(3) provides an analysis of the effects of the price increase on the
cost of home heating oil; and
(4) states whether, and provides a specific rationale for why, the
President does or does not support the drawdown and distribution of a
specified amount of oil from the Strategic Petroleum Reserve.
END