Summary
WHAT THIS BILL DOES
This bill requires the Secretary of Energy to develop a plan for increasing oil and gas leasing on federal lands before the first drawdown (removal and sale) of oil from the Strategic Petroleum Reserve (a federal emergency oil stockpile). The plan must increase the percentage of federal lands leased for oil and gas production by the same percentage as the petroleum being removed from the reserve, with a maximum increase limit of 15 percent.
WHO IT AFFECTS
The Secretary of Energy, the Secretary of Agriculture, the Secretary of the Interior, the Secretary of Defense, Congress, and companies seeking to lease federal lands for oil and gas production.
KEY PROVISIONS
- Before the first drawdown of petroleum from the Strategic Petroleum Reserve, the Secretary of Energy must develop and submit a plan to Congress to increase federal land leasing for oil and gas by a matching percentage, except in cases of severe energy supply interruption (Sec. 2(k)(1))
- The plan cannot allow the increase in federal land leasing to exceed 15 percent and cannot benefit any company with connections to specific foreign countries including China, North Korea, Russia, and Iran (Sec. 2(k)(2))
- The plan must identify specific areas for leasing within the Thompson Divide area in Colorado, including a list of parcels with their size, location, and required permits (Sec. 2(k)(5) and (6))
- The plan shall ensure that petroleum products from the reserve cannot be sold to Iran, China, North Korea, or Russia (Sec. 2(k)(3))
- Existing restrictions on oil and gas leasing in the North Atlantic Planning Area and South Atlantic Planning Area remain in effect (Sec. 4 and 5)
WHAT CHANGES
If this bill becomes law, the Secretary of Energy cannot proceed with drawing down and selling petroleum from the Strategic Petroleum Reserve without first creating and submitting a plan to increase federal oil and gas leasing. This adds a new requirement that ties reserve drawdowns to domestic oil and gas production increases on federal lands.
IMPORTANT DEFINITIONS
The bill defines "foreign entity of concern" as the People's Republic of China, the Democratic People's Republic of Korea, the Russian Federation, the Islamic Republic of Iran, and any other country subject to United States sanctions.
EFFECTIVE DATE
Not specified in bill text.
IIB
118TH CONGRESS
1ST SESSION
H. R. 21
IN THE SENATE OF THE UNITED STATES
JANUARY 30, 2023
Received; read twice and referred to the Committee on Energy and Natural
Resources
AN ACT
To provide for the development of a plan to increase oil
and gas production under oil and gas leases of Federal
lands under the jurisdiction of the Secretary of Agri-
culture, the Secretary of Energy, the Secretary of the
Interior, and the Secretary of Defense in conjunction
with a drawdown of petroleum reserves from the Stra-
tegic Petroleum Reserve.
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HR 21 RFS
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.
3
This Act may be cited as the ‘‘Strategic Production
4
Response Act’’.
5
SEC. 2. COMPENSATORY PRODUCTION INCREASE PLAN.
6
Section 161 of the Energy Policy and Conservation
7
Act (42 U.S.C. 6241) is amended by adding at the end
8
the following new subsection:
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‘‘(k) PLAN.—
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‘‘(1) IN GENERAL.—Except in the case of a se-
11
vere energy supply interruption described in sub-
12
section (d), the Secretary may not execute the first
13
drawdown of petroleum products in the Reserve
14
after the date of enactment of this subsection,
15
whether through sale, exchange, or loan, until the
16
Secretary has developed and submitted to Congress
17
a plan to increase the percentage of Federal lands
18
(including submerged lands of the Outer Continental
19
Shelf) under the jurisdiction of the Secretary of Ag-
20
riculture, the Secretary of Energy, the Secretary of
21
the Interior, and the Secretary of Defense leased for
22
oil and gas production by the same percentage as
23
the percentage of petroleum in the Strategic Petro-
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leum Reserve that has been drawn down during the
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HR 21 RFS
period beginning January 21, 2021, and ending on
1
the date of enactment of this Act, and that is to be
2
drawn
down
in
that
first
and
subsequent
3
drawdowns, subject to the limitation under para-
4
graph (2).
5
‘‘(2) LIMITATION.—
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‘‘(A) IN GENERAL.—The plan required by
7
paragraph (1) shall not provide for—
8
‘‘(i) a total increase in the percentage
9
of Federal lands described in paragraph
10
(1) leased for oil and gas production in ex-
11
cess of 15 percent; or
12
‘‘(ii) the financial benefit or participa-
13
tion of any entity that has a contractual
14
relationship with, or is owned, controlled,
15
or under the influence of, a foreign entity
16
of concern.
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‘‘(B) DEFINITION.—In this paragraph, the
18
term ‘foreign entity of concern’ means—
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‘‘(i) the People’s Republic of China;
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‘‘(ii) the Democratic People’s Republic
21
of Korea;
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‘‘(iii) the Russian Federation;
23
‘‘(iv) the Islamic Republic of Iran;
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and
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‘‘(v) any other country the govern-
1
ment of which is subject to sanctions im-
2
posed by the United States.
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‘‘(3) CONSULTATION.—The Secretary shall, in
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consultation with the Secretary of Agriculture, the
5
Secretary of the Interior, and the Secretary of De-
6
fense—
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‘‘(A) prepare the plan required by para-
8
graph (1); and
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‘‘(B) ensure such plan will not result in the
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sale of petroleum products drawn down from
11
the Reserve to Iran, China, North Korea, or
12
Russia.
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‘‘(4) SUBMISSION
TO
CONGRESS.—The Sec-
14
retary shall submit the plan developed under para-
15
graph (1) to the Committees on Armed Services, Ag-
16
riculture, Energy and Commerce, and Natural Re-
17
sources of the House of Representatives and the
18
Committees on Energy and Natural Resources, En-
19
vironment and Public Works, Armed Services, and
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Agriculture, Nutrition, and Forestry of the Senate.
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‘‘(5) THOMPSON DIVIDE.—As part of the plan
22
developed under paragraph (1), the Secretary shall
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identify areas to lease within the approximately
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224,793.73
acres,
including
approximately
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HR 21 RFS
200,518.28 acres of National Forest System lands,
1
approximately 15,464.99 acres of public lands, and
2
approximately 8,810.46 acres of reserved Federal
3
mineral interest within the Thompson Divide area in
4
Colorado.
5
‘‘(6) REQUIREMENTS.—The plan required by
6
paragraph (1) shall include a list of parcels planned
7
to be offered for lease, including, for each such par-
8
cel—
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‘‘(A) the size of the parcel, by acre;
10
‘‘(B) the location of the parcel; and
11
‘‘(C) any permits and approvals necessary
12
to access the parcel and produce oil and gas on
13
the parcel.’’.
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SEC. 3. NO EFFECT ON CERTAIN WITHDRAWALS OF FED-
15
ERAL LANDS.
16
Nothing in this Act, or any amendments made by this
17
Act, shall affect the Presidential memorandum titled
18
‘‘Memorandum on the Withdrawal of Certain Areas of the
19
United States Outer Continental Shelf from Leasing Dis-
20
position’’ and dated September 8, 2020.
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SEC. 4. NO EFFECT ON EXISTING LEASING RESTRICTIONS.
22
Nothing in this Act, or the amendments made by this
23
Act, shall affect any statutory or regulatory restrictions
24
in effect on the date of enactment of this Act (including
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HR 21 RFS
any withdrawal of Federal land) that may prohibit oil and
1
gas leasing within the area designated as the North Atlan-
2
tic Planning Area.
3
SEC. 5. NO EFFECT ON EXISTING LEASING RESTRICTIONS.
4
Nothing in this Act, or the amendments made by this
5
Act, shall affect any statutory or regulatory restrictions
6
in effect on the date of enactment of this Act (including
7
any withdrawal of Federal land) that may prohibit oil and
8
gas leasing within the area designated as the South Atlan-
9
tic Planning Area.
10
SEC. 6. RULE OF CONSTRUCTION WITH RESPECT TO ABUSE
11
OF EMERGENCY DECLARATIONS.
12
Nothing in this Act, or the amendments made by this
13
Act, may be construed to authorize the President to make
14
a determination under section 161(d) of the Energy Policy
15
and Conservation Act (42 U.S.C. 6241(d)) that an emer-
16
gency situation exists in order for the Secretary of Energy
17
to draw down and sell petroleum products under such sub-
18
section for political, non-emergency purposes.
19
Passed the House of Representatives January 27,
2023.
Attest:
CHERYL L. JOHNSON,
Clerk.
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