42 U.S.C. § 6239 — Development, operation, and maintenance

Page 6666 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6233 (Pub. L. 94–163, title I, § 152, Dec. 22, 1975, 89 Stat. 882; Pub. L. 101–383, § 6(a)(1), Sept. 15, 1990, 104 Stat. 729; Pub. L. 106–469, title I, § 103(5), Nov. 9, 2000, 114 Stat. 2029.) Editorial Notes AMENDMENTS 2000—Par. (1). Pub. L. 106–469, § 103(5)(A), struck out par. (1) which read as follows: ‘‘The term ‘Early Stor- age Reserve’ means that portion of the Strategic Petro- leum Reserve which consists of petroleum products stored pursuant to section 6235 of this title.’’ Par. (3). Pub. L. 106–469, § 103(5)(A), struck out par. (3) which read as follows: ‘‘The term ‘Industrial Petroleum Reserve’ means that portion of the Strategic Petro- leum Reserve which consists of petroleum products owned by importers or refiners and acquired, stored, or maintained pursuant to section 6236 of this title.’’ Par. (7). Pub. L. 106–469, § 103(5)(A), struck out par. (7) which read as follows: ‘‘The term ‘Regional Petroleum Reserve’ means that portion of the Strategic Petro- leum Reserve which consists of petroleum products stored pursuant to section 6237 of this title.’’ Par. (11). Pub. L. 106–469, § 103(5)(B), struck out ‘‘; such term includes the Industrial Petroleum Re- serve, the Early Storage Reserve, and the Regional Pe- troleum Reserve’’ before period at end. 1990—Pub. L. 101–383 inserted ‘‘and part C’’ after ‘‘this part’’. § 6233. Repealed. Pub. L. 106–469, title I, § 103(6), Nov. 9, 2000, 114 Stat. 2030 Section, Pub. L. 94–163, title I, § 153, Dec. 22, 1975, 89 Stat. 882; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288, related to the Strategic Petroleum Re- serve Office. § 6234. Strategic Petroleum Reserve (a) Establishment A Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products shall be created pursuant to this part. (b) Authority of Secretary The Secretary, in accordance with this part, shall exercise authority over the development, operation, and maintenance of the Reserve. (c) to (e) Repealed. Pub. L. 106–469, title I, § 103(7)(C), Nov. 9, 2000, 114 Stat. 2030 (f) Purpose of drawdown and distribution; re- quests for funds for storage (1) The drawdown and distribution of petro- leum products from the Strategic Petroleum Re- serve is authorized only under section 6241 of this title, and drawdown and distribution of pe- troleum products for purposes other than those described in section 6241 of this title shall be prohibited. (2) In the Secretary’s annual budget submis- sion, the Secretary shall request funds for acqui- sition, transportation, and injection of petro- leum products for storage in the Reserve. If no requests for funds are made, the Secretary shall provide a written explanation of the reason therefore. (Pub. L. 94–163, title I, § 154, Dec. 22, 1975, 89 Stat. 882; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 102–486, title XIV, § 1402, Oct. 24, 1992, 106 Stat. 2994; Pub. L. 105–177, § 1(6), June 1, 1998, 112 Stat. 106; Pub. L. 106–469, title I, § 103(7), Nov. 9, 2000, 114 Stat. 2030.) Editorial Notes AMENDMENTS 2000—Subsec. (a). Pub. L. 106–469, § 103(7)(A), amended subsec. (a) generally. Prior to amendment, subsec. (a) provided for the creation of a Strategic Petroleum Re- serve of up to 1 billion barrels of petroleum products and required that the Reserve contain not less than 150 million barrels of petroleum products by the end of the 3-year period beginning on Dec. 22, 1975, and that the President take actions to enlarge the Reserve to 1,000,000,000 barrels as rapidly as possible beginning Oct. 24, 1992. Subsec. (b). Pub. L. 106–469, § 103(7)(B), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘The Secretary, not later than December 15, 1976, shall prepare and transmit to the Congress, in ac- cordance with section 6421 of this title, a Strategic Pe- troleum Reserve Plan. Such Plan shall comply with the provisions of this section and shall detail the Sec- retary’s proposals for designing, constructing, and fill- ing the storage and related facilities of the Reserve.’’ Subsecs. (c) to (e). Pub. L. 106–469, § 103(7)(C), struck out subsecs. (c) to (e) which related to the levels of crude oil to be stored, plan objectives, and plan provi- sions. 1998—Subsec. (f). Pub. L. 105–177 added subsec. (f). 1992—Subsec. (a). Pub. L. 102–486 designated existing provisions as par. (1) and added par. (2). 1978—Subsecs. (b), (d). Pub. L. 95–619 substituted ‘‘Secretary’’ and ‘‘Secretary’s’’ for ‘‘Administrator’’ and ‘‘Administrator’s’’, respectively, meaning Adminis- trator of the Federal Energy Administration, wherever appearing. Statutory Notes and Related Subsidiaries STRATEGIC PETROLEUM RESERVE DRAWDOWN PLAN Pub. L. 97–229, § 4(c), Aug. 3, 1982, 96 Stat. 252, required the President to transmit to Congress, on or before Dec. 1, 1982, and as an amendment to the Strategic Pe- troleum Reserve Plan, a drawdown plan for the Stra- tegic Petroleum Reserve consistent with the require- ments of this section, to take effect on the date of transmittal and not be subject to section 6239(e) of this title relating to Congressional review. §§ 6235 to 6238. Repealed. Pub. L. 106–469, title I, § 103(8)–(11), Nov. 9, 2000, 114 Stat. 2030 Section 6235, Pub. L. 94–163, title I, § 155, Dec. 22, 1975, 89 Stat. 884; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288, related to the Early Storage Reserve. Section 6236, Pub. L. 94–163, title I, § 156, Dec. 22, 1975, 89 Stat. 885; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288, related to the Industrial Petroleum Reserve. Section 6237, Pub. L. 94–163, title I, § 157, Dec. 22, 1975, 89 Stat. 885; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 102–486, title XIV, § 1405, Oct. 24, 1992, 106 Stat. 2995, related to the Regional Petro- leum Reserve. Section 6238, Pub. L. 94–163, title I, § 158, Dec. 22, 1975, 89 Stat. 886; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288, related to a report on the establish- ment of Utility Reserves, Coal Reserves, Remote Crude Oil and Natural Gas Reserves. § 6239. Development, operation, and maintenance of the Reserve (a) to (e) Repealed. Pub. L. 106–469, title I, § 103(13)(A), Nov. 9, 2000, 114 Stat. 2030 (f) Powers of Secretary to develop and operate the Strategic Petroleum Reserve In order to develop, operate, or maintain the Strategic Petroleum Reserve, the Secretary may— Page 6667 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 6239 (1) issue rules, regulations, or orders; (2) acquire by purchase, condemnation, or otherwise, land or interests in land for the lo- cation of storage and related facilities; (3) construct, purchase, lease, or otherwise acquire storage and related facilities; (4) use, lease, maintain, sell or otherwise dis- pose of land or interests in land, or of storage and related facilities acquired under this part, under such terms and conditions as the Sec- retary considers necessary or appropriate; (5) acquire, subject to the provisions of sec- tion 6240 of this title, by purchase, exchange, or otherwise, petroleum products for storage in the Strategic Petroleum Reserve; (6) store petroleum products in storage fa- cilities owned and controlled by the United States or in storage facilities owned by others if those facilities are subject to audit by the United States; (7) execute any contracts necessary to de- velop, operate, or maintain the Strategic Pe- troleum Reserve; (8) bring an action, when the Secretary con- siders it necessary, in any court having juris- diction over the proceedings, to acquire by condemnation any real or personal property, including facilities, temporary use of facili- ties, or other interests in land, together with any personal property located on or used with the land. (g) Acquisition of property by negotiation as pre- requisite to condemnation Before any condemnation proceedings are in- stituted, an effort shall be made to acquire the property involved by negotiation, unless, the ef- fort to acquire such property by negotiation would, in the judgement of the Secretary be fu- tile or so time-consuming as to unreasonably delay the development of the Strategic Petro- leum Reserve, because of (1) reasonable doubt as to the identity of the owners, (2) the large num- ber of persons with whom it would be necessary to negotiate, or (3) other reasons. (h), (i) Repealed. Pub. L. 106–469, title I, § 103(13)(D), Nov. 9, 2000, 114 Stat. 2031 (j) Expansion beyond 700,000,000 barrels If the Secretary determines expansion beyond 700,000,000 barrels of petroleum product inven- tory is appropriate, the Secretary shall submit a plan for expansion to the Congress. (k) Exemption from subtitle IV of title 49 A storage or related facility of the Strategic Petroleum Reserve owned by or leased to the United States is not subject to the Interstate Commerce Act. (l) Rulemaking during drawdown and sale During a drawdown and sale of Strategic Pe- troleum Reserve petroleum products, the Sec- retary may issue implementing rules, regula- tions, or orders in accordance with section 553 of title 5, without regard to rulemaking require- ments in section 6393 of this title, and section 7191 of this title. (Pub. L. 94–163, title I, § 159, Dec. 22, 1975, 89 Stat. 886; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 97–229, § 4(b)(1), (2)(B), Aug. 3, 1982, 96 Stat. 251, 252; Pub. L. 99–58, title I, § 102(a), July 2, 1985, 99 Stat. 102; Pub. L. 101–383, §§ 4(a), 9, 11, Sept. 15, 1990, 104 Stat. 728, 735; Pub. L. 106–469, title I, § 103(12), (13), Nov. 9, 2000, 114 Stat. 2030.) Editorial Notes REFERENCES IN TEXT The Interstate Commerce Act, referred to in subsec. (k), is act Feb. 4, 1887, ch. 104, 24 Stat. 379, which was classified generally to chapters 1, 8, 12, 13, and 19 (§§ 1 et seq., 301 et seq., 901 et seq., 1001 et seq., and 1231 et seq., respectively) of former Title 49, Transportation. The Act was repealed (subject to an exception) by Pub. L. 95–473, § 4(b), Oct. 17, 1978, 92 Stat. 1466, the first sec- tion of which enacted subtitle IV (§ 10101 et seq.) of Title 49. Section 4(c) of Pub. L. 95–473 excepted from re- peal those provisions of the Interstate Commerce Act that vested functions in the Interstate Commerce Com- mission, or the chairman or members of the Commis- sion, related to transportation of oil by pipeline and that were transferred to the Secretary of Energy and the Federal Energy Regulatory Commission by sections 7155 and 7172(b) of this title. AMENDMENTS 2000—Pub. L. 106–469, § 103(12), amended section catch- line generally. Subsecs. (a) to (e). Pub. L. 106–469, § 103(13)(A), struck out subsecs. (a) to (e) which related to congressional re- view and effective date of the Strategic Petroleum Re- serve Plan, preparation and transmittal to Congress of proposals for designing, constructing, and filling facili- ties and of Plan amendments, and 60-day waiting period for effectiveness of amendments. Subsec. (f). Pub. L. 106–469, § 103(13)(B), amended sub- sec. (f) generally. Prior to amendment, subsec. (f) set out powers of the Secretary to implement the Strategic Petroleum Reserve Plan, the Early Storage Reserve Plan, proposals for designing, constructing, and filling facilities, amendments to the Plans, and the storage of petroleum products in interim storage facilities. Subsec. (g). Pub. L. 106–469, § 103(13)(C), substituted ‘‘development’’ for ‘‘implementation’’ and struck out ‘‘Plan’’ after ‘‘Strategic Petroleum Reserve’’. Subsecs. (h), (i). Pub. L. 106–469, § 103(13)(D), struck out subsecs. (h) and (i) which related to use of interim storage facilities and environmental considerations for existing facilities, and report to Congress on results of negotiations for enlargement of Strategic Petroleum Reserve to one billion barrels. Subsec. (j). Pub. L. 106–469, § 103(13)(E), amended sub- sec. (j) generally. Prior to amendment, subsec. (j) read as follows: ‘‘No later than 24 months after September 15, 1990, the Secretary shall amend the Strategic Petro- leum Reserve Plan to prescribe plans for completion of storage of one billion barrels of petroleum product in the Reserve. Such amendment shall comply with the provisions of this section and shall detail the Sec- retary’s plans for the design, construction, leasing or other acquisition, and fill of storage and related facili- ties of the Reserve to achieve such one billion barrels of storage. Such amendment shall not be subject to the congressional review procedures contained in section 6421 of this title. In assessing alternatives in the devel- opment of such plans, the Secretary shall consider leas- ing privately owned storage facilities.’’ Subsec. (l). Pub. L. 106–469, § 103(13)(F), amended sub- sec. (l) generally. Prior to amendment, subsec. (l) read as follows: ‘‘Notwithstanding subsection (d) of this sec- tion, during any period in which the Distribution Plan is being implemented, the Secretary may amend the plan and promulgate rules, regulations, or orders to im- plement such amendments in accordance with section 6393 of this title, without regard to the requirements of section 553 of title 5 and section 7191 of this title. Such amendments shall be transmitted to the Congress to- 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;