Federal

Buy Low and Sell High Act

Source: Congress.gov · 9,239 words in original text

What This Bill Does

This bill creates new oil and fuel reserves to try to lower consumer fuel prices. It establishes an Economic Petroleum Reserve within the existing Strategic Petroleum Reserve, a national network of refined gasoline and diesel reserves across different regions, and strengthens an existing home heating oil reserve. The bill also directs federal agencies to buy more electric vehicles and helps fund transportation electrification efforts. ##

Who It Affects

* The Secretary of Energy (carries out most provisions) * The President (makes findings about fuel supply emergencies) * Oil producers and refiners * States and state energy offices * Federal agencies and their vehicle fleets * Utility companies and electric vehicle charging providers * Oil refinery operators in the Western Hemisphere * U.S. taxpayers ##

Key Provisions

* The Secretary shall establish an Economic Petroleum Reserve containing up to 350 million barrels of crude oil within the Strategic Petroleum Reserve, and can buy crude oil from domestic producers for no more than $60 per barrel through December 2024 for delivery through 2027 (Sec. 101) * The Secretary shall establish a national network of Strategic Refined Petroleum Product Reserves in each petroleum district, each holding at least 4 million barrels of gasoline and 2 million barrels of diesel fuel, with total network capacity up to 250 million barrels (Sec. 102) * The Secretary can sell crude oil from the Economic Petroleum Reserve when West Texas Intermediate crude oil prices stay above $90 per barrel for at least one week, with revenue funding state transportation electrification plans and vehicle charging programs (Sec. 101) * The Northeast Home Heating Oil Reserve capacity shall increase from 2 million barrels to 4 million barrels (Sec. 103) * The Secretary shall prohibit exporting petroleum products from federal reserves to China, North Korea, Russia, Iran, sanctioned countries, or entities controlled by these countries or the Chinese Communist Party, except the Secretary can waive this if certifying the export serves U.S. national security interests (Sec. 105) * Beginning in fiscal year 2026, federal agencies must acquire 100 percent of light-duty vehicles as alternative fuel vehicles, with at least 50 percent being zero-emission or plug-in hybrid vehicles through 2034, rising to 100 percent zero-emission by 2050 (Sec. 203) * States may develop State energy transportation plans with federal financial assistance to deploy electric vehicle charging networks and modernize electric grids (Sec. 201) * The Secretary of Energy shall establish a program to help oil refineries in Western Hemisphere countries (except Venezuela) increase crude oil refining capacity through grants, loans, technical assistance, and equipment (Sec. 301) ##

What Changes

If this bill becomes law: * The federal government will establish and maintain three separate oil and fuel reserves beyond the existing Strategic Petroleum Reserve * The government can buy crude oil from U.S. producers at specified prices and store it in a new reserve * Refined gasoline and diesel will be stored in new regional reserves that can be released during supply emergencies * Federal agencies must buy significantly more electric vehicles starting in 2026, with requirements increasing over time * States receive funding to develop plans for electric vehicle charging infrastructure * Money from selling reserve oil will automatically fund transportation electrification programs * Petroleum products from federal reserves cannot be exported to certain countries without a national security waiver * Oil refineries in Western Hemisphere countries can receive U.S. government support to increase production ##

Important Definitions

* **Economic Petroleum Reserve**: A reserve of up to 350 million barrels of crude oil stored within the Strategic Petroleum Reserve, bought from domestic producers at prices not exceeding $60 per barrel (Sec. 101) * **Strategic Refined Petroleum Product Reserves**: A national network of reserves containing gasoline and diesel fuel, separate from the Strategic Petroleum Reserve, with at least one reserve in each petroleum district (Sec. 102) * **Covered entity** (regarding export restrictions): China, North Korea, Russia, Iran, any country subject to U.S. sanctions, or any entity owned, controlled, or influenced by these countries or the Chinese Communist Party (Sec. 105) * **Dislocation in gasoline or diesel market**: Occurs when the price difference between crude oil and finished fuel increases more than 50 percent over its 10-year average for 7 consecutive days and continues to increase in the most recent week (Sec. 102) * **Zero-emission vehicle**: A vehicle that produces no greenhouse gas emissions from its propulsion system (Sec. 203) * **Alternative fueled vehicle**: A vehicle that can operate on fuels other than traditional petroleum gasoline or diesel (Sec. 203) * **Federal fleet**: Vehicles with centrally supplied fuel owned, operated, leased, or controlled by federal agencies, excluding rental vehicles, manufacturer test vehicles, law enforcement vehicles, emergency vehicles, and military vehicles certified as necessary for national security (Sec. 203) * **Covered country** (for refinery assistance): A Western Hemisphere country other than Venezuela where the Secretary of State determines increased oil refining would promote U.S. national security and economic interests (Sec. 301) ##

Effective Date

* Most provisions take effect upon enactment * Federal agencies must meet new vehicle purchase requirements beginning in fiscal year 2026 (Sec. 203) * The Secretary cannot purchase gasoline or diesel for refined product reserves until 2026 (Sec. 102) * The pilot program to lease Strategic Petroleum Reserve facilities must begin within 180 days of enactment (Sec. 106) * The Department must submit a study on fuel delivery during pipeline disruptions within 24 months (Sec. 108) * The Secretary must issue rules governing exports within 60 days (Sec. 105)

I 118TH CONGRESS 1ST SESSION H. R. 432 To lower consumer fuel prices, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 20, 2023 Mr. PALLONE (for himself, Ms. KUSTER, Mr. TRONE, Ms. SPANBERGER, Ms. CRAIG, and Mr. CROW) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Com- mittee on Oversight and Accountability, for a period to be subsequently determined by the Speaker, in each case for consideration of such provi- sions as fall within the jurisdiction of the committee concerned A BILL To lower consumer fuel prices, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Buy Low and Sell High Act’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. TITLE I—PETROLEUM RESERVES Sec. 101. Economic Petroleum Reserve. Sec. 102. Establishing Strategic Refined Petroleum Product Reserves. VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 432 IH Sec. 103. Northeast Home Heating Oil Reserve. Sec. 104. SPR Petroleum Account. Sec. 105. Prohibition on certain exports. Sec. 106. Strategic Petroleum Reserve reforms. Sec. 107. Strategic Petroleum Reserve drawdown and sale. Sec. 108. DOE study and plan for delivery of fuel during pipeline disruptions. TITLE II—FUEL DEMAND Sec. 201. State energy transportation plans. Sec. 202. Transportation electrification. Sec. 203. Federal fleets. TITLE III—FUEL SUPPLY Sec. 301. Assistance for Western Hemisphere refineries. TITLE I—PETROLEUM RESERVES 1 SEC. 101. ECONOMIC PETROLEUM RESERVE. 2 (a) ESTABLISHMENT.—Section 154 of the Energy 3 Policy and Conservation Act (42 U.S.C. 6234) is amended 4 by adding at the end the following: 5 ‘‘(g) ECONOMIC PETROLEUM RESERVE.— 6 ‘‘(1) ESTABLISHMENT.—In carrying out sub- 7 section (b), the Secretary shall establish and main- 8 tain within the Strategic Petroleum Reserve an Eco- 9 nomic Petroleum Reserve of up to 350,000,000 bar- 10 rels of crude oil. 11 ‘‘(2) SOURCE.—The Economic Petroleum Re- 12 serve shall consist of— 13 ‘‘(A) 90,000,000 barrels of crude oil that 14 are stored in the Strategic Petroleum Reserve 15 on the date of enactment of this subsection, less 16 any amounts drawn down and sold under sec- 17 tion 161(k) after such date; and 18 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 432 IH ‘‘(B) any crude oil purchased under section 1 160(i).’’. 2 (b) PURCHASES.—Section 160 of the Energy Policy 3 and Conservation Act (42 U.S.C. 6240) is amended by 4 adding at the end the following: 5 ‘‘(i) PURCHASE OF CRUDE OIL FOR ECONOMIC PE- 6 TROLEUM RESERVE.— 7 ‘‘(1) IN GENERAL.—For purposes of section 8 154(g), the Secretary may acquire crude oil under 9 this section only by purchase from domestic pro- 10 ducers for a contract price of not more than $60 per 11 barrel, in accordance with this subsection. 12 ‘‘(2) IMMEDIATE DELIVERY.—The Secretary 13 may enter into a contract under paragraph (1) at 14 any time for immediate delivery of crude oil. 15 ‘‘(3) FUTURE DELIVERY.— 16 ‘‘(A) AUTHORIZED PERIOD.—During the 17 period that begins on the date of enactment of 18 this subsection and ends on December 31, 19 2024, the Secretary may enter into a contract 20 under paragraph (1) for delivery of crude oil to 21 occur during the period that begins on January 22 1, 2025, and ends on December 31, 2027. 23 ‘‘(B) PRIORITY.—In carrying out subpara- 24 graph (A), to the extent there are multiple of- 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 432 IH fers for contracts on equivalent terms, the Sec- 1 retary shall give priority to contracts for crude 2 oil produced by wells, including drilled but 3 uncompleted wells, that are minimizing green- 4 house gas emissions from activities at such 5 wells, as determined by the Secretary in con- 6 sultation with the Administrator of the Envi- 7 ronmental Protection Agency. 8 ‘‘(4) FUNDING.—The Secretary may enter into 9 a contract under paragraph (1) using amounts de- 10 posited in the SPR Petroleum Account under section 11 167(c)— 12 ‘‘(A) that are attributable to covered re- 13 ceipts described in section 167(e)(3)(A); or 14 ‘‘(B) that were appropriated for such pur- 15 pose pursuant to section 166. 16 ‘‘(5) APPLICABILITY OF CERTAIN CONSIDER- 17 ATIONS.—The objectives described in subsections 18 (b)(4), (c)(2), and (c)(5) shall not apply to the ac- 19 quisition of crude oil pursuant to a contract under 20 paragraph (1).’’. 21 (c) DRAWDOWN AND SALE.—Section 161 of the En- 22 ergy Policy and Conservation Act (42 U.S.C. 6241) is 23 amended by adding at the end the following: 24 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 432 IH ‘‘(k) DRAWDOWN AND SALE FROM ECONOMIC PE- 1 TROLEUM RESERVE.— 2 ‘‘(1) IN GENERAL.—Notwithstanding subsection 3 (d)(1), the Secretary may draw down and sell crude 4 oil from amounts in the Economic Petroleum Re- 5 serve established under section 154(g) at any time 6 the front-month futures price of West Texas Inter- 7 mediate crude oil has remained greater than $90 per 8 barrel for at least one week. 9 ‘‘(2) APPROPRIATIONS.— 10 ‘‘(A) STATE ENERGY TRANSPORTATION 11 PLANS.—Notwithstanding section 167, there is 12 appropriated to the Secretary of Energy to 13 carry out section 367 an amount equal to $9 14 for each barrel of crude oil sold under this sub- 15 section. 16 ‘‘(B) PLUG-IN ELECTRIC DRIVE VEHICLE 17 PROGRAM.—Notwithstanding section 167, there 18 is appropriated to the Secretary of Energy to 19 carry out section 131(b) of the Energy Inde- 20 pendence and Security Act of 2007 (42 U.S.C. 21 17011) an amount equal to $2 for each barrel 22 of crude oil sold under this subsection. 23 ‘‘(C) LARGE-SCALE TRANSPORTATION SEC- 24 TOR ELECTRIFICATION PROGRAM.—Notwith- 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 432 IH standing section 167, there is appropriated to 1 the Secretary of Energy to carry out section 2 131(c) of the Energy Independence and Secu- 3 rity Act of 2007 (42 U.S.C. 17011) an amount 4 equal to $3 for each barrel of crude oil sold 5 under this subsection. 6 ‘‘(D) ASSISTANCE FOR WESTERN HEMI- 7 SPHERE REFINERIES.—Notwithstanding section 8 167, there is appropriated to the Secretary of 9 Energy to carry out section 301 of the Buy 10 Low and Sell High Act an amount equal to $1 11 for each barrel of crude oil sold under this sub- 12 section.’’. 13 SEC. 102. ESTABLISHING STRATEGIC REFINED PETROLEUM 14 PRODUCT RESERVES. 15 (a) ESTABLISHMENT.—Title I of the Energy Policy 16 and Conservation Act (42 U.S.C. 6234) is amended by 17 adding at the end the following: 18 ‘‘PART E—STRATEGIC REFINED PETROLEUM 19 PRODUCT RESERVES 20 ‘‘SEC. 191. DEFINITIONS. 21 ‘‘In this part: 22 ‘‘(1) DISTRICT.—The term ‘district’ means, as 23 designated by the Administrator of the Energy In- 24 formation Administration— 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 432 IH ‘‘(A) a Petroleum Administration for De- 1 fense District; or 2 ‘‘(B) a subdistrict of a Petroleum Adminis- 3 tration for Defense District. 4 ‘‘(2) NETWORK.—The term ‘network’ means 5 the network of Strategic Refined Petroleum Product 6 Reserves established under this part. 7 ‘‘(3) RESERVE.—The term ‘Reserve’ means a 8 Strategic Refined Petroleum Product Reserve estab- 9 lished under this part. 10 ‘‘SEC. 192. ESTABLISHMENT. 11 ‘‘(a) IN GENERAL.—Notwithstanding any other pro- 12 vision of this Act, the Secretary shall establish, maintain, 13 and operate a national network of Strategic Refined Pe- 14 troleum Product Reserves. 15 ‘‘(b) LOCATIONS.—In carrying out subsection (a), the 16 Secretary shall establish, maintain, and operate at least 17 one Reserve in each district. 18 ‘‘(c) CAPACITY.—Each Reserve shall have the capac- 19 ity to contain at least 4,000,000 barrels of gasoline and 20 2,000,000 barrels of diesel fuel, and the network shall 21 have the capacity to contain up to 250,000,000 barrels 22 of gasoline and diesel fuel. 23 ‘‘(d) RELATIONSHIP TO SPR AND NORTHEAST HOME 24 HEATING OIL RESERVE.—A Reserve established under 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 432 IH this part is not a component of the Strategic Petroleum 1 Reserve established under part B of this title or the 2 Northeast Home Heating Oil Reserve established under 3 part D of this title. 4 ‘‘SEC. 193. AUTHORITY. 5 ‘‘To the extent necessary or appropriate to carry out 6 this part, the Secretary may— 7 ‘‘(1) purchase, contract for, lease, or otherwise 8 acquire, in whole or in part, storage and related fa- 9 cilities, and storage services; 10 ‘‘(2) use, lease, maintain, sell, or otherwise dis- 11 pose of storage and related facilities acquired under 12 this part; 13 ‘‘(3) acquire by purchase, exchange (including 14 exchange of petroleum products from the Strategic 15 Petroleum Reserve or received as royalty from Fed- 16 eral lands), lease, or otherwise, gasoline or diesel 17 fuel for storage in a Reserve; 18 ‘‘(4) store gasoline or diesel fuel in facilities not 19 owned by the United States; and 20 ‘‘(5) sell, exchange, or otherwise dispose of gas- 21 oline or diesel fuel from a Reserve established under 22 this part, including to maintain the quality or quan- 23 tity of the gasoline or diesel fuel in a Reserve or to 24 maintain the operational capability of a Reserve. 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 432 IH ‘‘SEC. 194. CONDITIONS FOR RELEASE. 1 ‘‘(a) GASOLINE RELEASE.—The Secretary may sell 2 gasoline from a Reserve only upon a finding by the Presi- 3 dent that there is a severe gasoline supply interruption 4 within the district in which the Reserve is located. Such 5 a finding may be made only if the President determines 6 that— 7 ‘‘(1) a dislocation in the gasoline market has re- 8 sulted from such interruption; or 9 ‘‘(2) a circumstance, other than that described 10 in paragraph (1), exists that constitutes a regional 11 gasoline supply shortage of significant scope and du- 12 ration and that action taken under this section 13 would assist directly and significantly in reducing 14 the adverse impact of such shortage. 15 ‘‘(b) DIESEL RELEASE.—The Secretary may sell die- 16 sel fuel from a Reserve only upon a finding by the Presi- 17 dent that there is a severe diesel fuel supply interruption 18 within the district in which the Reserve is located. Such 19 a finding may be made only if the President determines 20 that— 21 ‘‘(1) a dislocation in the diesel fuel market has 22 resulted from such interruption; or 23 ‘‘(2) a circumstance, other than that described 24 in paragraph (1), exists that constitutes a regional 25 diesel fuel supply shortage of significant scope and 26 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 432 IH duration and that action taken under this section 1 would assist directly and significantly in reducing 2 the adverse impact of such shortage. 3 ‘‘(c) DEFINITIONS.—For purposes of this section— 4 ‘‘(1) the term ‘covered entity’ means— 5 ‘‘(A) the People’s Republic of China; 6 ‘‘(B) the Democratic People’s Republic of 7 Korea; 8 ‘‘(C) the Russian Federation; 9 ‘‘(D) the Islamic Republic of Iran; 10 ‘‘(E) any other country the government of 11 which is subject to sanctions imposed by the 12 United States; and 13 ‘‘(F) any entity owned, controlled, or influ- 14 enced by— 15 ‘‘(i) a country referred to in any of 16 subparagraphs (A) through (F); or 17 ‘‘(ii) the Chinese Communist Party; 18 ‘‘(2) a ‘dislocation in the gasoline market’ shall 19 be deemed to occur only when— 20 ‘‘(A) the price differential between crude 21 oil and finished gasoline, as reflected in an in- 22 dustry daily publication, increases by more than 23 50 percent over its 10-year rolling average, and 24 continues for 7 consecutive days; and 25 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 432 IH ‘‘(B) the price differential continues to in- 1 crease during the most recent week for which 2 price information is available; and 3 ‘‘(3) a ‘dislocation in the diesel fuel market’ 4 shall be deemed to occur only when— 5 ‘‘(A) the price differential between crude 6 oil and diesel fuel, as reflected in an industry 7 daily publication, increases by more than 50 8 percent over its 10-year rolling average, and 9 continues for 7 consecutive days; and 10 ‘‘(B) the price differential continues to in- 11 crease during the most recent week for which 12 price information is available. 13 ‘‘(d) CONTINUING EVALUATION.—The Secretary 14 shall conduct a continuing evaluation of the price data 15 supplied by the Energy Information Administration and 16 data on gasoline and diesel fuel prices from published 17 sources. 18 ‘‘(e) RELEASE OF PETROLEUM PRODUCTS.—After 19 consultation with the gasoline, diesel fuel, and crude oil 20 refining industries, the Secretary shall determine proce- 21 dures governing the release of gasoline and diesel fuel 22 from a Reserve. The procedures shall provide that— 23 ‘‘(1) the Secretary may— 24 VerDate Sep 11 2014 03:04 Feb 02, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H432.IH H432 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •HR 432 IH ‘‘(A) sell gasoline or diesel fuel from a Re- 1 serve through a competitive process; or 2 ‘‘(B) enter into exchange agreements for 3 gasoline or diesel fuel that results in the Sec- 4 retary receiving a greater volume of gasoline or 5 diesel fuel as repayment than the volume pro- 6 vided to the acquirer; 7 ‘‘(2) in all such sales or exchanges, the Sec- 8 retary shall receive revenue or its equivalent in gaso- 9 line or diesel fuel that provides the Department with 10 fair market value; 11 ‘‘(3) t [Text truncated for display. Full text available on Congress.gov.]

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.