42 U.S.C. § 6240 — Petroleum products for storage, transport,

Page 6668 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6240 gether with a statement explaining the need for such amendments.’’ 1990—Subsecs. (i), (j). Pub. L. 101–383, § 4(a), added sub- secs. (i) and (j). Subsec. (k). Pub. L. 101–383, § 9, added subsec. (k). Subsec. (l). Pub. L. 101–383, § 11, added subsec. (l). 1985—Subsec. (e). Pub. L. 99–58 amended subsec. (e) generally, substituting provisions directing that amendments transmitted pursuant to subsec. (d) of this section not become effective until 60 days after trans- mittal except in the case of enumerated presidential determinations for provisions which had formerly em- powered Congress to disapprove of transmitted pro- posals and amendments in accordance with the proce- dures specified in section 6421 of this title. 1982—Subsec. (f)(5). Pub. L. 97–229, § 4(b)(1), added par. (5). Subsec. (h). Pub. L. 97–229, § 4(b)(2)(B), added subsec. (h). 1978—Subsecs. (a)(1), (c), (d), (e)(1), (f), (f)(I), (g). Pub. L. 95–619 substituted ‘‘Secretary’’ for ‘‘Administrator’’, meaning Administrator of the Federal Energy Adminis- tration, wherever appearing. Statutory Notes and Related Subsidiaries ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION FUND Pub. L. 114–74, title IV, § 404, Nov. 2, 2015, 129 Stat. 590, as amended by Pub. L. 116–136, div. B, title IV, § 14002(a), Mar. 27, 2020, 134 Stat. 526, provided that: ‘‘(a) ESTABLISHMENT.—There is hereby established in the Treasury of the United States a fund to be known as the Energy Security and Infrastructure Moderniza- tion Fund (referred to in this section as the ‘Fund’), consisting of— ‘‘(1) collections deposited in the Fund under sub- section (c); and ‘‘(2) amounts otherwise appropriated to the Fund. ‘‘(b) PURPOSE.—The purpose of the Fund is to provide for the construction, maintenance, repair, and replace- ment of Strategic Petroleum Reserve facilities. ‘‘(c) COLLECTION AND DEPOSIT OF SALE PROCEEDS IN FUND.— ‘‘(1) DRAWDOWN AND SALE.—Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), to the extent provided in advance in ap- propriation Acts, the Secretary of Energy shall draw down and sell crude oil from the Strategic Petroleum Reserve in amounts as authorized under subsection (e), except as provided in paragraph (2). Amounts re- ceived for a sale under this paragraph shall be depos- ited into the Fund during the fiscal year in which the sale occurs. Such amounts shall remain available in the Fund without fiscal year limitation. ‘‘(2) EMERGENCY PROTECTION.—The Secretary shall not draw down and sell crude oil under this sub- section in amounts that would limit the authority to sell petroleum products under section 161(h) of the Energy Policy and Conservation Act (42 U.S.C. 6241(h)) in the full amount authorized by that sub- section. ‘‘(d) AUTHORIZED USES OF FUND.— ‘‘(1) IN GENERAL.—Amounts in the Fund may be used for, or may be credited as offsetting collections for amounts used for, carrying out the program de- scribed in paragraph (2)(B), to the extent provided in advance in appropriation Acts. ‘‘(2) PROGRAM TO MODERNIZE THE STRATEGIC PETRO- LEUM RESERVE.— ‘‘(A) FINDINGS.—Congress finds the following: ‘‘(i) The Strategic Petroleum Reserve is one of the Nation’s most valuable energy security as- sets. ‘‘(ii) The age and condition of the Strategic Pe- troleum Reserve have diminished its value as a Federal energy security asset. ‘‘(iii) Global oil markets and the location and amount of United States oil production and refin- ing capacity have dramatically changed in the 40 years since the establishment of the Strategic Pe- troleum Reserve. ‘‘(iv) Maximizing the energy security value of the Strategic Petroleum Reserve requires a mod- ernized infrastructure that meets the drawdown and distribution needs of changed domestic and international oil and refining market conditions. ‘‘(B) PROGRAM.—The Secretary of Energy shall es- tablish a Strategic Petroleum Reserve moderniza- tion program to protect the United States economy from the impacts of emergency product supply dis- ruptions. The program may include— ‘‘(i) operational improvements to extend the useful life of surface and subsurface infrastruc- ture; ‘‘(ii) maintenance of cavern storage integrity; and ‘‘(iii) addition of infrastructure and facilities to optimize the drawdown and incremental distribu- tion capacity of the Strategic Petroleum Reserve. ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated (and drawdowns and sales under subsection (c) in an equal amount are authorized) for carrying out subsection (d)(2)(B), $2,000,000,000 for the period encompassing fiscal years 2017 through 2022. ‘‘(f) TRANSMISSION OF DEPARTMENT BUDGET RE- QUESTS.—The Secretary of Energy shall prepare and submit in the Department’s annual budget request to Congress— ‘‘(1) an itemization of the amounts of funds nec- essary to carry out subsection (d); and ‘‘(2) a designation of any activities thereunder for which a multiyear budget authority would be appro- priate. ‘‘(g) SUNSET.—The authority of the Secretary to draw down and sell crude oil from the Strategic Petroleum Reserve under this section shall expire at the end of fis- cal year 2022.’’ § 6240. Petroleum products for storage, transport, or exchange (a) Eligibility of petroleum products The Secretary may acquire, place in storage, transport, or exchange petroleum products ac- quired by purchase or exchange. (b) Objectives in determining manner of acquisi- tion The Secretary shall, to the greatest extent practicable, acquire petroleum products for the Reserve in a manner consonant with the fol- lowing objectives: (1) minimization of the cost of the Reserve; (2) Repealed. Pub. L. 106–469, title I, § 103(14)(C), Nov. 9, 2000, 114 Stat. 2031; (3) minimization of the Nation’s vulner- ability to a severe energy supply interruption; (4) minimization of the impact of such acqui- sition upon supply levels and market forces; and (5) encouragement of competition in the pe- troleum industry. (c) Procedures The Secretary shall develop, with public no- tice and opportunity for comment, procedures consistent with the objectives of this section to acquire petroleum for the Reserve. Such proce- dures shall take into account the need to— (1) maximize overall domestic supply of crude oil (including quantities stored in pri- vate sector inventories); (2) avoid incurring excessive cost or appre- ciably affecting the price of petroleum prod- ucts to consumers; Page 6669 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6240 (3) minimize the costs to the Department of the Interior and the Department of Energy in acquiring such petroleum products (including foregone revenues to the Treasury when petro- leum products for the Reserve are obtained through the royalty-in-kind program); (4) protect national security; (5) avoid adversely affecting current and fu- tures prices, supplies, and inventories of oil; and (6) address other factors that the Secretary determines to be appropriate. (d), (e) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031 (f) Predrawdown diversion If the Secretary finds that a severe energy supply interruption may be imminent, the Sec- retary may suspend the acquisition of petroleum product for, and the injection of petroleum prod- uct into, the Reserve and may sell any petro- leum product acquired for and in transit to, but not injected into, the Reserve. (g) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031 (h) Purchase from stripper well properties (1) If the President finds that declines in the production of oil from domestic resources pose a threat to national energy security, the Presi- dent may direct the Secretary to acquire oil from domestic production of stripper well prop- erties for storage in the Strategic Petroleum Reserve. Except as provided in paragraph (2), the Secretary may set such terms and conditions as he deems necessary for such acquisition. (2) Crude oil purchased by the Secretary pur- suant to this subsection shall be by competitive bid. The price paid by the Secretary— (A) shall take into account the cost of pro- duction including costs of reservoir and well maintenance; and (B) shall not exceed the price that would have been paid if the Secretary had acquired petroleum products of a similar quality on the open market under competitive bid procedures without regard to the source of the petroleum products. (Pub. L. 94–163, title I, § 160, Dec. 22, 1975, 89 Stat. 888; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 96–294, title VIII, §§ 801(a), 802(a), 803, June 30, 1980, 94 Stat. 775, 776; Pub. L. 97–35, title X, § 1033, Aug. 13, 1981, 95 Stat. 618; Pub. L. 97–229, § 4(a)(1), (b)(2)(C), Aug. 3, 1982, 96 Stat. 250, 252; Pub. L. 99–58, title I, §§ 102(b), 103(b)(1), July 2, 1985, 99 Stat. 103, 104; Pub. L. 99–88, title I, § 100, Aug. 15, 1985, 99 Stat. 342; Pub. L. 99–272, title VII, § 7102, Apr. 7, 1986, 100 Stat. 141; Pub. L. 99–509, title III, § 3202, Oct. 21, 1986, 100 Stat. 1889; Pub. L. 101–383, §§ 4(b), (c), 5(a), (b)(3), 7, Sept. 15, 1990, 104 Stat. 728, 729, 734; Pub. L. 101–548, § 1, Nov. 14, 1990, 104 Stat. 2398; Pub. L. 102–486, title XIV, § 1404(a), (b)(2), Oct. 24, 1992, 106 Stat. 2994, 2995; Pub. L. 104–66, title I, § 1051(f), Dec. 21, 1995, 109 Stat. 716; Pub. L. 106–469, title I, § 103(14), Nov. 9, 2000, 114 Stat. 2031; Pub. L. 109–58, title III, § 301(e)(2)(A), Aug. 8, 2005, 119 Stat. 684; Pub. L. 113–67, div. A, title III, § 306(a), Dec. 26, 2013, 127 Stat. 1183.) Editorial Notes AMENDMENTS 2013—Subsec. (a). Pub. L. 113–67 amended subsec. (a) generally. Prior to amendment, text read as follows: ‘‘The Secretary may acquire, place in storage, trans- port, or exchange— ‘‘(1) crude oil produced from Federal lands ‘‘(2) crude oil which the United States is entitled to receive in kind as royalties from production on Fed- eral lands; and ‘‘(3) petroleum products acquired by purchase, ex- change, or otherwise.’’ 2005—Subsec. (c). Pub. L. 109–58 added subsec. (c). 2000—Subsec. (a). Pub. L. 106–469, § 103(14)(A), in intro- ductory provisions, substituted ‘‘The Secretary may acquire, place in storage, transport, or exchange’’ for ‘‘The Secretary is authorized, for purposes of imple- menting the Strategic Petroleum Reserve Plan or the Early Storage Reserve Plan, to place in storage, trans- port, or exchange’’. Subsec. (a)(1). Pub. L. 106–469, § 103(14)(B), struck out ‘‘, including crude oil produced from the Naval Petro- leum Reserves to the extent that such production is au- thorized by law;’’ after ‘‘Federal lands’’. Subsec. (b). Pub. L. 106–469, § 103(14)(C), struck out ‘‘, including the Early Storage Reserve and the Re- gional Petroleum Reserve’’ before ‘‘in a manner con- sonant’’ in introductory provisions. Subsec. (b)(2). Pub. L. 106–469, § 103(14)(C), struck out par. (2) which read as follows: ‘‘orderly development of the Naval Petroleum Reserves to the extent authorized by law;’’. Subsecs. (c) to (e). Pub. L. 106–469, § 103(14)(D), struck out subsecs. (c) to (e) which related to fill operations by the President, disposition of crude oil from Naval Pe- troleum Reserve Numbered 1, and suspensions of fill op- erations during emergency situations. Subsec. (g). Pub. L. 106–469, § 103(14)(D), struck out subsec. (g) which required the Secretary to conduct a test program of storage of refined petroleum products within the Reserve. 1995—Subsec. (g)(7). Pub. L. 104–66 struck out par. (7) which read as follows: ‘‘No later than January 31, 1994, the Secretary shall transmit to the Congress a report on the test program. The report shall evaluate the mechanisms demonstrated under the test program, other potential mechanisms, and the purchase of facili- ties. The report shall include an assessment of the costs and benefits of the various mechanisms. The re- port shall also make recommendations with regard to future storage of refined petroleum products and con- tain drafts of any legislative provisions which the Sec- retary wishes to recommend.’’ 1992—Subsec. (d)(2). Pub. L. 102–486, § 1405, redesig- nated cls. (i) to (iii) as pars. (A) to (C), respectively, and struck out former par. (A) designation after ‘‘(2)’’. Subsec. (h). Pub. L. 102–486, § 1404(a), added subsec. (h). 1990—Subsec. (c)(3). Pub. L. 101–383, § 4(b)(1), sub- stituted ‘‘fiscal year 1994’’ for ‘‘fiscal years 1988 and 1989’’ and ‘‘1,000,000,000’’ for ‘‘at least 750,000,000’’. Subsec. (d)(1)(A). Pub. L. 101–383, § 4(c), inserted ‘‘Gov- ernment owned facilities of’’ after ‘‘within’’. Subsec. (d)(1)(B). Pub. L. 101–383, § 4(b)(2), inserted be- fore period at end ‘‘and the Secretary has amended the Strategic Petroleum Reserve Plan as required by sec- tion 6239(j) of this title’’. Subsec. (d)(4). Pub. L. 101–383, § 5(b)(3), added par. (4). Subsec. (f). Pub. L. 101–383, § 5(a), added subsec. (f). Subsec. (g). Pub. L. 101–548 inserted ‘‘with regard to future storage of refined petroleum products and’’ after ‘‘recommendations’’ in par. (7). Pub. L. 101–383, § 7, added subsec. (g). 1986—Subsec. (c)(3). Pub. L. 99–509, § 3202(a), sub- stituted ‘‘fiscal year 1987 and continuing through fiscal years 1988 and 1989’’ for ‘‘fiscal year 1986 and continuing through fiscal years 1987 and 1988’’, ‘‘750,000,000 barrels’’ for ‘‘527,000,000 barrels’’, and ‘‘at the highest prac- ticable fill rate achievable, subject to the availability Page 6670 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6240 of appropriated funds’’ for ‘‘at a level sufficient to as- sure a minimum average annual fill-rate of at least 35,000 barrels per day in addition to any petroleum products acquired for the Reserve to replace petroleum products withdrawn from the Reserve as a result of a test drawdown and distribution’’. Pub. L. 99–272, § 7102(a), added par. (3). Subsec. (d)(1)(A). Pub. L. 99–509, § 3202(b)(1), sub- stituted ‘‘750,000,000 barrels’’ for ‘‘527,000,000 barrels’’. Pub. L. 99–272, § 7102(b)(1), substituted ‘‘527,000,000 bar- rels’’ for ‘‘500,000,000 barrels’’. Subsec. (d)(1)(B). Pub. L. 99–509, § 3202(b)(2), sub- stituted ‘‘75,000 barrels’’ for ‘‘100,000 barrels’’, and sub- stituted a period for ‘‘; or’’. Subsec. (d)(1)(C). Pub. L. 99–509, § 3202(b)(3), struck out subpar. (C) which read as follows: ‘‘acquisition, trans- portation, and injection activities for the Reserve are being undertaken, beginning in fiscal year 1986 and con- tinuing through fiscal years 1987 and 1988 until the quantity of crude oil in storage within the Reserve is at least 527,000,000 barrels, at a level sufficient to as- sure that petroleum products in storage in the Reserve will be increased at a minimum annual average rate of at least 35,000 barrels per day in addition to any petro- leum products acquired for the Reserve to replace pe- troleum products withdrawn from the Reserve as a re- sult of a test drawdown and distribution’’. Pub. L. 99–272, § 7102(b)(2), added subpar. (C) and struck out former subpar. (C) which read as follows: ‘‘the fill rate is sufficient to attain a level of 500,000,000 barrels by the end of the fiscal year during which the fill rate falls below the rate established in (B).’’ 1985—Subsec. (d)(1)(C). Pub. L. 99–88 added subpar. (C). Subsec. (d)(3). Pub. L. 99–58, § 103(b)(1), added par. (3). Subsec. (e)(1)(B). Pub. L. 99–58, § 102(b)(1), (2), inserted ‘‘and’’ at end of cl. (i), inserted a period following ‘‘to the Congress’’, and struck out ‘‘in accordance with sec- tion 6422 of this title, together with a request for a sus- pension of such provisions; and’’ in cl. (ii), and struck out cl. (iii) which directed that provisions of subsecs. (c) and (d) of this section would not apply if a Presi- dential request for the suspension of such provisions was approved by a resolution of each House of Congress within 60 days of continuous session after the date of its transmittal in accordance with provisions of section 6422 of this title applicable to energy conservation con- tingency plans. Subsec. (e)(2). Pub. L. 99–58, § 102(b)(3), substituted ‘‘may become effective on the day the finding is trans- mitted to the Congress and shall terminate nine months thereafter or on such earlier date as is specified in such finding’’ for ‘‘shall take effect on the date on which a resolution approving that request is adopted by the second House to have so approved that request and shall terminate 9 months thereafter, or such earlier date as is specified in the request transmitted under paragraph (1)(B)(ii)’’. Subsec. (e)(3), (4). Pub. L. 99–58, § 102(b)(3), (4), redesig- nated par. (4) as (3). Former par. (3), which related to application of section 6422 of this title for purposes of par. (1)(B), was struck out. 1982—Subsec. (c). Pub. L. 97–229, § 4(a)(1), substituted provisions directing the President to fill the Strategic Petroleum Reserve with petroleum products at a level sufficient to assure an increase at an annual rate of at least the minimum required fill rate, 300,000 barrels per day, until the quantity of petroleum products stored is at least 500,000,000 barrels, allowing for a lower min- imum required fill rate of 220,000 barrels per day if the President finds that compliance with the 300,000 barrels per day rate would not be in the national interest, specifying the effective period of such a Presidential finding, authorizing a higher minimum required rate than the 220,000 barrels per day if funds are available in any fiscal year after fiscal year 1982, making the Im- poundment Control Act of 1974 applicable to funds available under section 6247(b) and (e) of this title, and providing that, after the Strategic Petroleum Reserve reaches 500,000,000 barrels, the President shall seek to fill the Reserve at an annual rate of at least 300,000 bar- rels per day of petroleum products until the Reserve reaches 750,000,000 barrels for provisions directing the President to seek to fill the Strategic Petroleum Re- serve with crude oil at a level sufficient to assure that crude oil in storage will be increased at an average an- nual rate of at least 300,000 barrels per day until the Re- serve is at least 750,000,000 barrels. Subsec. (e)(4). Pub. L. 97–229, § 4(b)(2)(C), substituted ‘‘petroleum product’’ for ‘‘crude oil’’. 1981—Subsec. (c). Pub. L. 97–35 substituted provisions respecting fill operation at a rate of 300,000 barrels per day for provisions respecting fill operation at a rate of 100,000 barrels per day. 1980—Subsec. (c). Pub. L. 96–294, § 801(a), added subsec. (c). Subsec. (d). Pub. L. 96–294, § 802(a), added subsec. (d). Subsec. (e). Pub. L. 96–294, § 803, added subsec. (e). 1978—Pub. L. 95–619 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’, meaning Administrator of the Federal Energy Administration, wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–229, § 4(a)(2), Aug. 3, 1982, 96 Stat. 251, pro- vided that: ‘‘The amendment made by paragraph (1) [amending this section] shall take effect July 1, 1982.’’ EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–35, title X, § 1038, Aug. 13, 1981, 95 Stat. 621, provided that: ‘‘The provisions of this title [enacting sections 6247, 8341, and 8484 of this title, amending this section and sections 6245, 6246, 6831 to 6833, 6835, 6837 to 6839, 8372, 8421, 8422, and 8803 of this title, repealing sec- tions 6834, 6836 and 8341 of this title, and enacting provi- sions set out as notes under sections 6201, 6231, 6247, 7270, and 8341 of this title, section 3620 of Title 12, Banks and Banking, and section 719e of Title 15, Com- merce and Trade] shall take effect on the date of enact- ment of this Act [Aug. 13, 1981].’’ EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–294, title VIII, § 801(b), June 30, 1980, 94 Stat. 775, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect on the date of the enactment of this Act [June 30, 1980], and shall apply with respect to the entirety of fiscal year 1981 (and each fiscal year thereafter).’’ Pub. L. 96–294, title VIII, § 802(b), June 30, 1980, 94 Stat. 776, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect October 1, 1980.’’ FILLING STRATEGIC PETROLEUM RESERVE TO CAPACITY Pub. L. 109–58, title III, § 301(e)(1), Aug. 8, 2005, 119 Stat. 684, provided that: ‘‘The Secretary [of Energy] shall, as expeditiously as practicable, without incur- ring excessive cost or appreciably affecting the price of petroleum products to consumers, acquire petroleum in quantities sufficient to fill the Strategic Petroleum Re- serve to the 1,000,000,000-barrel capacity authorized under section 154(a) of the Energy Policy and Conserva- tion Act (42 U.S.C. 6234(a)), in accordance with the sec- tions 159 and 160 of that Act (42 U.S.C. 6239, 6240).’’ PROCEDURES FOR ACQUISITION OF PETROLEUM FOR RESERVE Pub. L. 109–58, title III, § 301(e)(2)(B), (C), Aug. 8, 2005, 119 Stat. 684, 685, provided that: ‘‘(B) REVIEW OF REQUESTS FOR DEFERRALS OF SCHED- ULED DELIVERIES.—The procedures developed under sec- tion 160(c) of the Energy Policy and Conservation Act [42 U.S.C. 6240(c)], as added by subparagraph (A), shall include procedures and criteria for the review of re- quests for the deferrals of scheduled deliveries. ‘‘(C) DEADLINES.—The Secretary [of Energy] shall— ‘‘(i) propose the procedures required under the amendment made by subparagraph (A) [amending Page 6671 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6240 this section] not later than 120 days after the date of enactment of this Act [Aug. 8, 2005]; ‘‘(ii) promulgate the procedures not later than 180 days after the date of enactment of this Act; and ‘‘(iii) comply with the procedures in acquiring pe- troleum for the Reserve effective beginning on the date that is 180 days after the date of enactment of this Act.’’ SUSPENSION OF TEST PROGRAM REQUIREMENTS DURING FISCAL YEAR 1994 Pub. L. 103–138, title II, Nov. 11, 1993, 107 Stat. 1406, provided in part that requirements of subsec. (g) of this section would not apply in fiscal year 1994. STUDY AND REPORT ON OIL LEASING AND OTHER ARRANGEMENTS TO FILL SPR TO ONE BILLION BARRELS Pub. L. 101–46, § 2, June 30, 1989, 103 Stat. 132, directed Secretary of Energy to conduct a study on potential fi- nancial arrangements, including long-term leasing of crude oil and storage facilities, that could be used to provide additional, alternative means of financing the filling of the Strategic Petroleum Reserve to one bil- lion barrels and directed Secretary to transmit an in- terim report to Committee on Energy and Natural Re- sources of Senate and Committee on Energy and Com- merce of House of Representatives no later than Oct. 15, 1989, and no later than Feb. 1, 1990, to transmit to such committees a copy of the preliminary written so- licitations for proposed alternative financial arrange- ments to assist in filling the Strategic Petroleum Re- serve to one billion barrels and a final report con- taining findings and conclusions together with a draft of legislative changes necessary to authorize the most significant alternative financial arrangements. EXCHANGE OF AGRICULTURAL PRODUCTS FOR CRUDE OIL TO BE DELIVERED TO STRATEGIC PETROLEUM RESERVE Pub. L. 99–190, § 101(d) [title II], Dec. 19, 1985, 99 Stat. 1224, 1254, provided that: ‘‘Notwithstanding any other provision of law, the Secretary of Agriculture, at the request of the Secretary of Energy, may exchange agri- cultural products owned by the Commodity Credit Cor- poration for crude oil to be delivered to the Strategic Petroleum Reserve: Provided, That the Secretary of En- ergy shall approve the quantity, quality, delivery method, scheduling, market value and other aspects of the exchange of such agricultural products: Provided further, That if the volume of agricultural products to be exchanged has a value in excess of the market value of the crude oil acquired by such exchange, then the Secretary of Agriculture shall require as part of the terms and conditions of the exchange that the party or entity providing such crude oil shall agree to purchase, within six months following the exchange, current crop commodities or value-added food products from United States producers or processors in an amount equal to at least one-half the difference between the value of the commodities received in exchange and the market value of the crude oil acquired for the Strategic Petro- leum Reserve.’’ ALLOCATION TO STRATEGIC PETROLEUM RESERVE OF LOWER TIER CRUDE OIL AND FEDERAL ROYALTY OIL; PROCEDURES APPLICABLE, AUTHORITIES, ETC. Pub. L. 96–294, title VIII, § 805, June 30, 1980, 94 Stat. 777, provided that: ‘‘(a)(1) In order to carry out the requirement of the amendment made by section 801 of this Act [amending this section and enacting provision set out as a note above] and to carry out the policies and objectives es- tablished in sections 151 and 160(b)(1) of the Energy Pol- icy and Conservation Act (42 U.S.C. 6231 and 6240(b)(1)) the President shall, within 60 days after the date of the enactment of this Act [June 30, 1980], promulgate and make effective an amendment to the provisions of the regulation under section 4(a) of the Emergency Petro- leum Allocation Act of 1973 [15 U.S.C. 753(a)] relating to entitlements, which has the same effect as allocating lower tier crude oil to the Government for storage in the Strategic Petroleum Reserve. Such amendment shall not apply with respect to crude oil purchased after September 30, 1981, for storage in such reserve. ‘‘(2) The authority provided by this subsection shall be in addition to, and shall not be deemed to limit, any other authority available to the President under the Emergency Petroleum Allocation Act of 1973 [15 U.S.C. 751 et seq.] or any other law. ‘‘(3) The President or his delegate may promulgate and make effective rules or orders to implement this subsection without regard to the requirements of sec- tion 501 of the Department of Energy Organization Act [42 U.S.C. 7191] or any other law or regulation speci- fying procedural requirements. ‘‘(b) In addition to the requirement under subsection (a), the President may direct that— ‘‘(1) all or any portion of Federal royalty oil be placed in storage in the Reserve, ‘‘(2) all or any portion of Federal royalty oil be ex- changed, directly or indirectly, for other crude oil for storage in the Reserve, or ‘‘(3) all or any portion of the proceeds from the sales of Federal royalty oil be transferred to the ac- count established under subsection (c) for use for the purchase of crude oil for the Reserve, as provided in subsection (c). ‘‘(c)(1) Any proceeds— ‘‘(A) from the sale of entitlements received by the Government under the amendment to the regulation made under subsection (a), and ‘‘(B) to the extent provided in subsection (b), from the sale of Federal royalty oil, shall be deposited in a special account which the Sec- retary of the Treasury shall establish on the books of the Treasury of the United States. ‘‘(2)(A) Subject to the provisions of any Act enacted pursuant to section 660 of the Department of Energy Organization Act [42 U.S.C. 7270], such account shall be available (except as provided in subparagraph (B)) for use by the Secretary of Energy, without fiscal year limitation, for the purchase of crude oil for the Stra- tegic Petroleum Reserve, to the extent provided in ad- vance in appropriation Acts. ‘‘(B) Amounts in such account attributable to the proceeds from the sale of entitlements under the amendment to the regulation under subsection (a) are hereby appropriated for fiscal year 1981 for acquisition of crude oil for the Strategic Petroleum Reserve pursu- ant to subsection (a). ‘‘(d) For purposes of this section— ‘‘(1) the terms ‘entitlements’, ‘crude oil’, and ‘allo- cation’ shall have the same meaning as those terms have as used in the Emergency Petroleum Allocation Act of 1973 [15 U.S.C. 751 et seq.] (and the regulation thereunder); ‘‘(2) the term ‘lower tier crude oil’ means crude oil which is subject to the price ceiling established under section 212.73 of title 10, Code of Federal Regulations; ‘‘(3) the term ‘Federal royalty oil’ means crude oil which the United States is entitled to receive in kind as royalties from production on Federal land (as such term is defined in section 3(10) of the Energy Policy and Conservation Act (42 U.S.C. 6202(10)); and ‘‘(4) the term ‘proceeds from the sale of Federal royalty oil’ means that portion of the amounts depos- ited into the Treasury of the United States from the sale of Federal royalty oil which is not otherwise re- quired to be disposed of (other than as miscellaneous receipts) pursuant to (A) the provisions of section 35 of the Act of February 25, 1920, as amended (41 Stat. 450; 30 U.S.C. 191), commonly known as the Mineral Lands Leasing Act, or (B) the provisions of any other law.’’ RATE OF FILL OF STRATEGIC PETROLEUM RESERVE Pub. L. 96–514, title II, Dec. 12, 1980, 94 Stat. 2976, pro- vided in part: ‘‘That the President shall immediately seek to undertake, and thereafter continue, crude oil Page 6672 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6241 acquisition, transportation, and injection activities at a level sufficient to assure that crude oil storage in the Strategic Petroleum Reserve will be increased to an av- erage annual rate of at least 300,000 barrels per day or a sustained average annual daily rate of fill which would fully utilize appropriated funds: Provided, That the requirements of the preceding provision shall be in addition to the provisions of title VIII of the Energy Security Act [title VIII of Pub. L. 96–294, which amend- ed this section and section 7430 of Title 10, Armed Forces, and enacted provisions set out as a note above] and shall not affect such provisions of the Energy Secu- rity Act in any way.’’ Executive Documents EX. ORD. NO. 12231. STRATEGIC PETROLEUM RESERVE Ex. Ord. No. 12231, Aug. 4, 1980, 45 F.R. 52139, provided: By the authority vested in me as President of the United States of America by Title VIII of the Energy Security Act (Public Law 96–294) [title VIII of Pub. L. 96–294, which amended this section and section 7430 of Title 10, Armed Forces, and enacted provisions set out as a note above] and by Section 301 of Title 3 of the United States Code, and in order to meet the goals and requirements for the strategic petroleum reserve, it is hereby ordered as follows: 1–101. The functions vested in the President by Sec- tion 160(c) of the Energy Policy and Conservation Act, as amended, are delegated to the Secretary of Energy (42 U.S.C. 6240(c); see Section 801 of the Energy Secu- rity Act). 1–102. The functions vested in the President by Sec- tion 7430(k) of Title 10 of the United States Code are delegated to the Secretary of Energy (see Section 804(b) of the Energy Security Act). 1–103. The functions vested in the President by Sec- tion 805(a) of the Energy Security Act [section 805(a) of Pub. L. 96–294, set out as a note above] are, consistent with Section 2 of Executive Order No. 11790, as amended [set out as a note under section 761 of Title 15, Com- merce and Trade], delegated to the Secretary of En- ergy. JIMMY CARTER. § 6241. Drawdown and sale of petroleum prod- ucts (a) Power of Secretary The Secretary may drawdown and sell petro- leum products in the Reserve only in accordance with the provisions of this section. (b), (c) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031 (d) Presidential finding prerequisite to draw- down and sale (1) Drawdown and sale of petroleum products from the Strategic Petroleum Reserve may not be made unless the President has found draw- down and sale are required by a severe energy supply interruption or by obligations of the United States under the international energy program. (2) For purposes of this section, in addition to the circumstances set forth in section 6202(8) of this title, a severe energy supply interruption shall be deemed to exist if the President deter- mines that— (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 petro- leum products has resulted from such emer- gency situation; and (C) such price increase is likely to cause a major adverse impact on the national econ- omy. (e) Sales procedures (1) The Secretary shall sell petroleum prod- ucts withdrawn from the Strategic Petroleum Reserve at public sale to the highest qualified bidder in the amounts, for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to Federal, State, or local regulations controlling sales of petro- leum products. (2) 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. (f) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031 (g) Directive to carry out test drawdown and sale (1) The Secretary shall conduct a continuing evaluation of the drawdown and sales proce- dures. In the conduct of an evaluation, the Sec- retary is authorized to carry out a test draw- down and sale or exchange of petroleum prod- ucts from the Reserve. Such a test drawdown and sale or exchange may not exceed 5,000,000 barrels of petroleum products. (2) Repealed. Pub. L. 106–469, title I, § 103(15)(F)(ii), Nov. 9, 2000, 114 Stat. 2031. (3) At least part of the crude oil that is sold or exchanged under this subsection shall be sold or exchanged to or with entities that are not part of the Federal Government. (4) The Secretary may not sell any crude oil under this subsection at a price less than that which the Secretary determines appropriate and, in no event, at a price less than 95 percent of the sales price, as estimated by the Secretary, of comparable crude oil being sold in the same area at the time the Secretary is offering crude oil for sale in such area under this subsection. (5) The Secretary may cancel any offer to sell or exchange crude oil as part of any test under this subsection if the Secretary determines that there are insufficient acceptable offers to obtain such crude oil. (6) In the case of a sale of any petroleum prod- ucts under this subsection, the Secretary shall, to the extent funds are available in the SPR Pe- troleum Account as a result of such sale, ac- quire petroleum products for the Reserve within the 12-month period beginning after completion of the sale. (7) Rules, regulations, or orders issued in order to carry out this subsection which have the ap- plicability and effect of a rule as defined in sec- tion 551(4) of title 5 shall not be subject to the requirements of subchapter II of chapter 5 of such title or to section 6393 of this title. (8) NOTICE TO CONGRESS.— (A) PRIOR NOTICE.—Not less than 14 days be- fore the date on which a test is carried out under this subsection, the Secretary shall no- tify both Houses of Congress of the test. (B) EMERGENCY.—The prior notice require- ment in subparagraph (A) shall not apply if the Secretary determines that an emergency exists which requires a test to be carried out, in which case the Secretary shall notify both