42 U.S.C. § 6241
The Secretary may drawdown and sell petroleum products in the Reserve only in accordance with the provisions of this section.
then the Secretary may, subject to the limitations of paragraph (2), draw down and sell petroleum products from the Strategic Petroleum Reserve.
Notwithstanding any other law, the President may permit any petroleum products withdrawn from the Strategic Petroleum Reserve in accordance with this section to be sold and delivered for refining or exchange outside of the United States, in connection with an arrangement for the delivery of refined petroleum products to the United States.
In this subsection:
The term "binding offer" means a bid submitted by the State of Hawaii for an assured award of a specific quantity of petroleum product, with a price to be calculated pursuant to paragraph (2) of this subsection, that obligates the offeror to take title to the petroleum product without further negotiation or recourse to withdraw the offer.
The term "category of petroleum product" means a master line item within a notice of sale.
The term "eligible entity" means an entity that owns or controls a refinery that is located within the State of Hawaii.
The term "full tanker load" means a tanker of approximately 700,000 barrels of capacity, or such lesser tanker capacity as may be designated by the State of Hawaii.
The term "insular area" means the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, the Freely Associated States of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
The term "offering" means a solicitation for bids for a quantity or quantities of petroleum product from the Strategic Petroleum Reserve as specified in the notice of sale.
The term "notice of sale" means the document that announces-
In the case of an offering of a quantity of petroleum product during a drawdown of the Strategic Petroleum Reserve-
In administering this subsection, in the case of each offering, the Secretary may impose the limitation described in subparagraph (B) or (C) that results in the purchase of the lesser quantity of petroleum product.
The Secretary may limit the quantity of a petroleum product that the State of Hawaii may purchase through a binding offer at any offering to 1/12 of the total quantity of imports of the petroleum product brought into the State during the previous year (or other period determined by the Secretary to be representative).
The Secretary may limit the quantity that may be purchased through binding offers at any offering to 3 percent of the offering.
Notwithstanding any limitation imposed under paragraph (3), in administering this subsection, in the case of each offering, the Secretary shall, at the request of the Governor of the State of Hawaii, or an eligible entity certified under paragraph (7), adjust the quantity to be sold to the State of Hawaii in accordance with this paragraph.
The Secretary shall adjust upward to the next whole number increment of a full tanker load if the quantity to be sold is-
The Secretary shall adjust downward to the next whole number increment of a full tanker load if the quantity to be sold is less than 50 percent of a full tanker load more than a whole number increment of a full tanker load.
The State of Hawaii may enter into an exchange or a processing agreement that requires delivery to other locations, if a petroleum product of similar value or quantity is delivered to the State of Hawaii.
Except as otherwise provided in this chapter, the Secretary may require the State of Hawaii to comply with the standard sales provisions applicable to purchasers of petroleum products at competitive sales.
Subject to subparagraphs (B) and (C) and notwithstanding any other provision of this paragraph, if the Governor of the State of Hawaii certifies to the Secretary that the State has entered into an agreement with an eligible entity to carry out this chapter, the eligible entity may act on behalf of the State of Hawaii to carry out this subsection.
The Governor of the State of Hawaii shall not certify more than one eligible entity under this paragraph for each notice of sale.
If the Secretary has notified the Governor of the State of Hawaii that a company has been barred from bidding (either prior to, or at the time that a notice of sale is issued), the Governor shall not certify the company under this paragraph.
At the request of the Governor of an insular area, the Secretary shall, for a period not to exceed 180 days following a drawdown of the Strategic Petroleum Reserve, assist the insular area or the President of a Freely Associated State in its efforts to maintain adequate supplies of petroleum products from traditional and nontraditional suppliers.
42 U.S.C. § 6241
EDITORIAL NOTES
REFERENCES IN TEXTThis chapter, referred to in subsec. (j)(6), (7)(A), was in the original "this Act", meaning Pub. L. 94-163, Dec. 22, 1975, 89 Stat. 871, known as the Energy Policy and Conservation Act. For complete classification of this Act to the Code, see Short Title note set out under section 6201 of this title and Tables.
AMENDMENTS2021-Subsec. (h)(2)(C), (D). Pub. L. 117-58 substituted "252,400,000" for "340,000,000".2018-Subsec. (h)(1)(C), (D). Pub. L. 115-123, §30204(c)(1), added subpar. (C) and redesignated former subpar. (C) as (D).Subsec. (h)(2)(C), (D). Pub. L. 115-141 substituted "340,000,000" for "350,000,000". Pub. L. 115-123, §30204(c)(2), substituted "350,000,000" for "450,000,000".2016-Subsec. (h)(2)(C), (D). Pub. L. 114-255 substituted "450,000,000" for "500,000,000". 2015-Subsec. (g)(8). Pub. L. 114-74 added par. (8) and struck out former par. (8) which read as follows: "The Secretary shall transmit to both Houses of the Congress a detailed explanation of the test carried out under this subsection. Such explanation may be a part of any report made to the President and the Congress under section 6245 of this title." 2000- Pub. L. 106-469, §103(15)(A), substituted "sale of petroleum products" for "distribution of the Reserve" in section catchline.Subsec. (a). Pub. L. 106-469, §103(15)(B), substituted "drawdown and sell petroleum products in" for "drawdown and distribute".Subsec. (b). Pub. L. 106-469, §103(15)(C), struck out subsec. (b) which read as follows: "Except as provided in subsections (c), (f), and (g) of this section, no drawdown and distribution of the Reserve may be made except in accordance with the provisions of the Distribution Plan contained in the Strategic Petroleum Reserve Plan which has taken effect pursuant to section 6239(a) of this title." Subsec. (c). Pub. L. 106-469, §103(15)(C), struck out subsec. (c) which read as follows: "Drawdown and distribution of the Early Storage Reserve may be made in accordance with the provisions of the Distribution Plan contained in the Early Storage Reserve Plan until the Strategic Petroleum Reserve Plan has taken effect pursuant to section 6239(a) of this title."Subsec. (d)(1). Pub. L. 106-469, §103(15)(D), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "Neither the Distribution Plan contained in the Strategic Petroleum Reserve Plan nor the Distribution Plan contained in the Early Storage Reserve Plan may be implemented, and no drawdown and distribution of the Reserve or the Early Storage Reserve may be made, unless the President has found that implementation of either such Distribution Plan is required by a severe energy supply interruption or by obligations of the United States under the international energy program."Subsec. (e). Pub. L. 106-469, §103(15)(E), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: "The Secretary may, by rule, provide for the allocation of any petroleum product withdrawn from the Strategic Petroleum Reserve in amounts specified in (or determined in a manner prescribed by) and at prices specified in (or determined in a manner prescribed by) such rules. Such price levels and allocation procedures shall be consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 753(b)(1) of title 15."Subsec. (f). Pub. L. 106-469, §103(15)(C), struck out subsec. (f) which read as follows: "The Secretary may permit any importer or refiner who owns any petroleum products stored in the Industrial Petroleum Reserve pursuant to section 6236 of this title to remove or otherwise dispose of such products upon such terms and conditions as the Secretary may prescribe."Subsec. (g)(1). Pub. L. 106-469, §103(15)(F)(i), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "The Secretary shall conduct a continuing evaluation of the Distribution Plan. In the conduct of such evaluation, the Secretary is authorized to carry out test drawdown and distribution of crude oil from the Reserve. If any such test drawdown includes the sale or exchange of crude oil, then the aggregate quantity of crude oil withdrawn from the Reserve may not exceed 5,000,000 barrels during any such test drawdown or distribution." Subsec. (g)(2). Pub. L. 106-469, §103(15)(F)(ii), struck out par. (2) which read as follows: "The Secretary shall carry out such drawdown and distribution in accordance with the Distribution Plan and implementing regulations and contract provisions, modified as the Secretary considers appropriate taking into consideration the artificialities of a test and the absence of a severe energy supply interruption. To meet the requirements of subsections (d) and (e) of section 6239 of this title, the Secretary shall transmit any such modification of the Plan, along with explanatory and supporting material, to both Houses of the Congress no later than 15 calendar days prior to the offering of any crude oil for sale under this subsection."Subsec. (g)(4). Pub. L. 106-469, §103(15)(F)(iii), substituted "95 percent" for "90 percent". Subsec. (g)(5). Pub. L. 106-469, §103(15)(F)(iv), substituted "test" for "drawdown and distribution".Subsec. (g)(6). Pub. L. 106-469, §103(15)(F)(v), amended par. (6) generally. Prior to amendment, par. (6) read as follows:"(6)(A) The minimum required fill rate in effect for any fiscal year shall be reduced by the amount of any crude oil drawdown from the Reserve under this subsection during such fiscal year."(B) In the case of a sale of any crude oil under this subsection, the Secretary shall, to the extent funds are available in the SPR Petroleum Account as a result of such sale, acquire crude oil for the Reserve within the 12-month period beginning after the completion of the sale. Such acquisition shall be in addition to any acquisition of crude oil for the Reserve required as part of a fill rate established by any other provision of law."Subsec. (g)(8). Pub. L. 106-469, §103(15)(F)(vi), substituted "test" for "drawdown and distribution".Subsec. (h)(1). Pub. L. 106-469, §103(15)(G)(i), substituted "sell petroleum products from" for "distribute" in concluding provisions. Subsec. (h)(1)(C). Pub. L. 106-469, §103(15)(G)(ii), added subpar. (C). Subsec. (h)(2). Pub. L. 106-469, §103(15)(G)(iii), substituted "Petroleum products from the Reserve may not" for "In no case may the Reserve" in introductory provisions. Subsec. (h)(3). Pub. L. 106-469, §103(15)(G)(iv), substituted "sale" for "distribution" in two places. 1998-Subsec. (j). Pub. L. 105-388 added subsec. (j).1992-Subsec. (d). Pub. L. 102-486, §1401(1), designated existing provisions as par. (1) and added par. (2).Subsec. (h)(1)(A). Pub. L. 102-486, §1401(2), inserted "or international" after "domestic". 1990-Subsec. (g)(1). Pub. L. 101-383, §8, amended par. (1) generally. Prior to amendment, par. (1) read as follows: "In order to evaluate the implementation of the Distribution Plan, the Secretary shall, commencing within 180 days after July 2, 1985, carry out a test drawdown and distribution under this subsection through the sale or exchange of approximately 1,100,000 barrels of crude oil from the Reserve. The requirement of this paragraph shall not apply if the President determines, within the 180-day period described in the preceding sentence, that implementation of the Distribution Plan is required by a severe energy supply interruption or by obligations of the United States under the international energy program."Subsec. (h). Pub. L. 101-383, §3(b), added subsec. (h).Subsec. (i). Pub. L. 101-383, §10, added subsec. (i).1985-Subsec. (b). Pub. L. 99-58, §103(b)(2), inserted reference to subsec. (g) of this section. Subsec. (g). Pub. L. 99-58, §103(a), added subsec. (g). 1978-Subsecs. (a), (e), (f). Pub. L. 95-619 substituted "Secretary" for "Administrator", meaning Administrator of the Federal Energy Administration, wherever appearing.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105-388, §9(c), Nov. 13, 1998, 112 Stat. 3484, provided that: "The amendment made by subsection (a) [amending this section] takes effect on the earlier of-"(1) the date that is 180 days after the date of enactment of this Act [Nov. 13, 1998]; or "(2) the date that final regulations are issued under subsection (b) [set out as a note below]."
REGULATIONS Pub. L. 105-388, §9(b), Nov. 13, 1998, 112 Stat. 3484, provided that: "(1) IN GENERAL.-The Secretary of Energy shall issue such regulations as are necessary to carry out the amendment made by subsection (a) [amending this section]."(2) ADMINISTRATIVE PROCEDURE.-Regulations issued to carry out the amendment made by subsection (a) shall not be subject to-"(A) section 523 of the Energy Policy and Conservation Act (42 U.S.C. 6393); or"(B) section 501 of the Department of Energy Organization Act (42 U.S.C. 7191)."
STRATEGIC PETROLEUM RESERVE DRAWDOWN AND SALEProvisions related to drawdown and sale from the Strategic Petroleum Reserve were contained in the following acts: Pub. L. 118-42, div. D, title III, §308, Mar. 9, 2024, 138 Stat. 208. Pub. L. 117-58, div. I, §90002(a)-(c) (1), Nov. 15, 2021, 135 Stat. 1342. Pub. L. 116-136, div. B, title IV, §14002(b), Mar. 27, 2020, 134 Stat. 526. Pub. L. 116-94, 133 Stat. 2671. Pub. L. 115-270, title III, §30093009,, 132 Stat. 3870. Pub. L. 115-244, 132 Stat. 2908. Pub. L. 115-141, 132 Stat. 520. Pub. L. 115-141, div. O, title V, §501(a), (b), Mar. 23, 2018, 132 Stat. 1079, 1080. Pub. L. 115-123, div. C, title II, §30204(a), (b), Feb. 9, 2018, 132 Stat. 126, 127, as amended by Pub. L. 117-328, div. M, title III, §1301(d), Dec. 29, 2022, 136 Stat. 5194. Pub. L. 115-97, title II, §200030003,, 131 Stat. 2237. Pub. L. 115-56, div. D, §158, as added by Pub. L. 115-123, div. B, §20101(2), Feb. 9, 2018, 132 Stat. 120. Pub. L. 114-255, div. A, title V, §5010(a), (b), Dec. 13, 2016, 130 Stat. 1197, 1198. Pub. L. 114-94, div. C, title XXXII, §322042204,, 129 Stat. 1740, as amended by Pub. L. 117-328, div. M, title III, §1301(c), Dec. 29, 2022, 136 Stat. 5194. Pub. L. 114-74, title IV, §403, Nov. 2, 2015, 129 Stat. 589, as amended by Pub. L. 117-328, div. M, title III, §1301(b), Dec. 29, 2022, 136 Stat. 5194.
- Administrator
- The term "Administrator" means the Administrator of General Services.
- Secretary
- The term "Secretary" means the Secretary of Housing and Urban Development.1See References in Text note below.
- State
- The term "State" means a State, the District of Columbia, Puerto Rico, the Trust Territory of the Pacific Islands, or any territory or possession of the United States.
- international energy program
- The term "international energy program" means the Agreement on an International Energy Program, signed by the United States on November 18, 1974, including (A) the annex entitled "Emergency Reserves", (B) any amendment to such Agreement which includes another nation as a party to such Agreement, and (C) any technical or clerical amendment to such Agreement.
- petroleum product
- The term "petroleum product" means crude oil, residual fuel oil, or any refined petroleum product (including any natural liquid and any natural gas liquid product).
- severe energy supply interruption
- The term "severe energy supply interruption" means a national energy supply shortage which the President determines-(A) is, or is likely to be, of significant scope and duration, and of an emergency nature;(B) may cause major adverse impact on national safety or the national economy; and(C) results, or is likely to result, from (i) an interruption in the supply of imported petroleum products, (ii) an interruption in the supply of domestic petroleum products, or (iii) sabotage, an act of terrorism, or an act of God.