[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6067 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6067
To amend the Energy Policy and Conservation Act to help reduce the oil
prices to consumers, to reduce the cost of petroleum acquisition for
the Strategic Petroleum Reserve, to better match the composition of the
Strategic Petroleum Reserve to refinery requirements in the United
States, to fund energy research and development, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2008
Mr. Lampson (for himself, Mr. Edwards, Mr. Markey, Mr. Shays, Mr. Gene
Green of Texas, Mr. Inglis of South Carolina, Mr. Moore of Kansas, Mr.
Cramer, Mr. Kind, Mr. Bartlett of Maryland, Mr. Welch of Vermont, Mr.
Hill, Ms. Giffords, Mr. Boswell, Mr. Bishop of Georgia, Mr. Wilson of
Ohio, Mr. Chandler, Mr. Hall of New York, Mr. Nadler, Mr. Inslee, Mr.
Kagen, and Mr. Israel) introduced the following bill; which was
referred to the Committee on Energy and Commerce, and in addition to
the Committee on Science and Technology, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Energy Policy and Conservation Act to help reduce the oil
prices to consumers, to reduce the cost of petroleum acquisition for
the Strategic Petroleum Reserve, to better match the composition of the
Strategic Petroleum Reserve to refinery requirements in the United
States, to fund energy research and development, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Invest in Energy Independence Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The composition of petroleum that is currently being
acquired for the Strategic Petroleum Reserve is putting upward
pressure on world oil prices and the ultimate price of gasoline
and other petroleum products for consumers.
(2) The quality of petroleum that is currently being
acquired for the Strategic Petroleum Reserve is contributing to
the growing disparity between the types of petroleum in the
Reserve and the current processing capabilities of petroleum
refineries in the United States.
(3) The composition of petroleum in the Strategic Petroleum
Reserve should more closely match the current processing
capabilities of petroleum refiners in the United States, which
should reduce the cost of acquiring petroleum for the Reserve.
(4) Lighter grade petroleum with an API gravity of 35
degrees or higher is in significantly greater demand than heavy
grade petroleum with an API gravity of 26 degrees or lower,
creating a significant premium in the price of light grade
petroleum relative to heavy grade petroleum.
(5) Significant additional funding is needed for important
energy research and development activities that will help
reduce United States dependence on oil and transform our energy
infrastructure through the adoption of clean domestic energy
technologies.
(6) Current acquisitions of petroleum for the Strategic
Petroleum Reserve are pursued on a volume-per-month basis,
which is not as cost-effective as other approaches that take
advantage of market fluctuations.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``light grade petroleum'' means--
(A) crude oil in the Strategic Petroleum Reserve
categorized as Bayou Choctaw Sweet, Big Hill Sweet,
West Hackberry Sweet, or Bryan Mound Sweet; and
(B) oil acquired for storage in the Strategic
Petroleum Reserve with one of the categories of oil
referred to in subparagraph (A);
(2) the term ``heavy grade petroleum'' means crude oil with
an API gravity of 26 degrees or lower; and
(3) the term ``Secretary'' means the Secretary of Energy.
SEC. 4. OBJECTIVES.
The objectives of this Act are as follows:
(1) To increase the total inventory level in the Strategic
Petroleum Reserve without the need for additional
appropriations.
(2) To reduce the cost of petroleum acquisition for the
Strategic Petroleum Reserve.
(3) To provide increased funding to accelerate energy
research and development that will reduce the United States
dependence on oil, transform the energy infrastructure through
the adoption of clean domestic energy technologies, and reduce
the emissions of greenhouse gases.
(4) To modernize the composition of petroleum in the
Strategic Petroleum Reserve to reflect the current processing
capabilities of refineries in the United States.
SEC. 5. MODERNIZATION OF THE STRATEGIC PETROLEUM RESERVE.
(a) Initial Petroleum Exchange From the Strategic Petroleum
Reserve.--Notwithstanding section 161 of the Energy Policy and
Conservation Act (42 U.S.C. 6241), the Secretary shall publish a plan
not later than 30 days after the date of enactment of this Act to--
(1) exchange as soon as possible light grade petroleum from
the Strategic Petroleum Reserve, in an amount equal to 10
percent of the total number of barrels of crude oil in the
Reserve as of the date of enactment of this Act, for an
equivalent volume of heavy grade petroleum plus any additional
cash bonus bids received that reflect the difference in the
market value between light grade petroleum and heavy grade
petroleum and the timing of deliveries of the heavy grade
petroleum;
(2) from the gross proceeds of the cash bonus bids, deposit
the amount necessary to pay for the direct administrative and
operational costs of the exchange into the SPR Petroleum
Account established under section 167 of the Energy Policy and
Conservation Act (42 U.S.C. 6247);
(3) deposit 90 percent of the remaining net proceeds from
the exchange into the account established under section 6(a);
and
(4) deposit the remaining balance into the SPR Petroleum
Account to acquire additional petroleum for the Strategic
Petroleum Reserve.
(b) Study of the Potential for Additional Exchanges From the
Strategic Petroleum Reserve.--The Secretary shall conduct a study of
the potential for additional changes in the composition of light grade
petroleum and heavy grade petroleum in the Strategic Petroleum Reserve.
The Secretary shall submit to Congress a report, containing the results
of the study and any recommendations with regard to the need for
additional changes in the composition of the petroleum in the Reserve,
not later than 18 months after the date of enactment of this Act.
(c) Dollar Cost Averaging.--To decrease the cost and improve the
efficiency of filling the Strategic Petroleum Reserve, the Secretary
shall, to the maximum extent possible, purchase, exchange, or otherwise
acquire crude oil for the Reserve on a dollar cost averaging basis. For
purposes of this subsection, dollar cost averaging means an acquisition
goal for each fiscal year of a constant monthly dollar value of
petroleum.
(d) Deferrals.--The Secretary may, when economically beneficial and
practical, grant requests to defer scheduled deliveries of petroleum to
the Reserve if it will receive a premium for the deferral paid in
additional barrels of oil which will reduce the cost of oil acquisition
and increase the volume of oil delivered to the Reserve.
SEC. 6. ENERGY INDEPENDENCE AND SECURITY FUND.
(a) Establishment.--There is hereby established in the Treasury of
the United States the ``Energy Independence and Security Fund'' (in
this section referred to as ``the Fund'').
(b) Administration.--The Secretary shall be responsible for
administering the Fund for the purpose of carrying out this section.
(c) Deposits.--The Secretary shall transfer the balance of funds in
the SPR Petroleum Account on the date of enactment of this Act in
excess of $10,000,000 into the Fund.
(d) Distribution of Funds.--The Secretary shall make available for
obligation, without further appropriation and without fiscal year
limitation, the following amounts from the Fund:
(1) Advanced research projects agency--energy.--The
Secretary shall transfer $100,000,000 to the account ``Energy
Transformation Acceleration Fund'', established under section
5012(m) of the America COMPETES Act (42 U.S.C. 16538(m), to
remain available until expended. Of the funds so transferred,
the Secretary shall further allocate the amounts made available
for obligation as follows:
(A) $50,000,000 shall be available for university-
based research projects.
(B) $10,000,000 shall be available for program
direction expenses.
(2) Wind energy research and development.--The Secretary
shall transfer $15,000,000 to the account ``Energy Efficiency
and Renewable Energy'', to remain available until expended, for
necessary expenses for a program to support the development of
next-generation wind turbines, including turbines capable of
operating in areas with low wind speeds, as authorized in
section 931(a)(2)(B) of the Energy Policy Act of 2005 (42
U.S.C. 16231(a)(2)(B)).
(3) Solar energy research and development.--The Secretary
shall transfer $30,000,000 to the account ``Energy Efficiency
and Renewable Energy'', to remain available until expended, for
necessary expenses for a program to accelerate the research,
development, demonstration, and deployment of solar energy
technologies, and public education and outreach materials
pursuant to such program, as authorized by section 931(a)(2)(A)
of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(A)).
(4) Low income weatherization.--The Secretary shall
transfer $100,000,000 to the account ``Weatherization
Assistance Program'', to remain available until expended, for
necessary expenses for a program to weatherize low income
housing, as authorized by section 411 of the Energy
Independence and Security Act of 2007 (Public Law 110-140).
(5) Marine and hydrokinetic renewable electric energy.--The
Secretary shall transfer $30,000,000 to the account ``Energy
Efficiency and Renewable Energy'', to remain available until
expended, for necessary expenses for a program to accelerate
the research, development, demonstration, and deployment of
ocean and wave energy, including hydrokinetic renewable energy,
as authorized by section 931 of the Energy Policy Act of 2005
(42 U.S.C. 16231) and section 636 of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17215).
(6) Advanced vehicles research, development, and
demonstration.--The Secretary shall transfer $40,000,000 to the
account ``Energy Efficiency and Renewable Energy'', to remain
available until expended, for necessary expenses for research,
development, and demonstration on advanced, cost-effective
technologies to improve the energy efficiency and environmental
performance of vehicles, as authorized in section 911(a)(2)(A)
of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(A)).
(7) Industrial energy efficiency research and
development.--The Secretary shall transfer $110,000,000 to the
account ``Energy Efficiency and Renewable Energy'', to remain
available until expended, for necessary expenses for a program
to accelerate the research, development, demonstration, and
deployment of new technologies to improve the energy efficiency
and reduce greenhouse gas emissions from industrial processes,
as authorized in section 911(a)(2)(C) of the Energy Policy Act
of 2005 (42 U.S.C. 16191(a)(2)(C)) and in section 452 of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17111).
(8) Building and lighting energy efficiency research and
development.--The Secretary shall transfer $70,000,000 to the
account ``Energy Efficiency and Renewable Energy'', to remain
available until expended, for necessary expenses for a program
to accelerate the research, development, demonstration and
deployment of new technologies to improve the energy efficiency
of and reduce greenhouse gas emissions from buildings, as
authorized in section 321(g) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 6295 note), section 422 of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17082),
and section 912 of the Energy Policy Act of 2005 (42 U.S.C.
16192).
(9) Geothermal energy development.--The Secretary shall
transfer $30,000,000 to the account ``Energy Efficiency and
Renewable Energy'', to remain available until expended, for
necessary expenses for geothermal research and development
activities to be managed by the National Renewable Energy
Laboratory, as authorized by sections 613, 614, 615, and 616 of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17192-95) and section 931(a)(2)(C) of the Energy Policy Act of
2005 (42 U.S.C. 16231(a)(2)(C)).
(10) Smart grid technology research, development, and
demonstration.--The Secretary shall transfer $30,000,000 to the
account ``Energy Efficiency and Renewable Energy'', to remain
available until expended, for necessary expenses for research,
development, and demonstration of smart grid technologies, as
authorized by section 1304 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17384).
(11) Carbon capture and storage.--The Secretary shall
transfer $385,000,000 to the account ``Fossil Energy Research
and Development'', to remain available until expended, for
necessary expenses for a program of demonstration projects of
carbon capture and storage, and for a research program to
address public health, safety, and environmental impacts, as
authorized by section 963 of the Energy Policy Act of 2005 (42
U.S.C. 16293) and sections 703 and 707 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17251, 17255).
Notwithstanding any other provision of law, one of the
demonstration projects shall be a component of the FutureGen
project.
(12) Nonconventional domestic natural gas production and
environmental research.--
(A) The Secretary shall transfer $50,000,000 to the
account authorized by section 999H(e) of the Energy
Policy Act of 2005 (42 U.S.C. 16378(e)), to remain
available until expended.
(B) The Secretary shall transfer $15,000,000 to the
account ``Fossil Energy Research and Development'', to
remain available until expended, for necessary expenses
for a program of basin-oriented assessments and public
and private partnerships involving States and industry
to foster the development of regional advanced
technological, regulatory, and economic development
strategies for the efficient and environmentally
sustainable recovery and market delivery of natural gas
and domestic petroleum resources within the United
States, and for support for the Stripper Well
Consortium.
(13) Hydrogen research and development.--The Secretary
shall transfer $5,000,000 to the account ``Energy Efficiency
and Renewable Energy'', to remain available until expended, for
necessary expenses for the Department of Energy's H-Prize
Program, as authorized by section 1008(f) of the Energy Policy
Act of 2005 (42 U.S.C. 16396(f)).
(14) Energy storage for transportation and electric
power.--
(A) The Secretary shall transfer $30,000,000 to the
account ``Basic Energy Sciences'', to remain available
until expended, for necessary expenses for a program to
accelerate basic research on energy storage systems to
support electric drive vehicles, stationary
applications, and electricity transmission and
distribution, as authorized by section 641(p)(1) of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17231(p)(1)).
(B) The Secretary shall transfer $70,000,000 to the
account ``Energy Efficiency and Renewable Energy'', to
remain available until expended, including--
(i) $30,000,000 for a program to accelerate
applied research on energy storage systems to
support electric drive vehicles, stationary
applications, and electricity transmission and
distribution as authorized by section 641(p)(2)
of the Energy Independence and Security Act of
2007 (42 U.S.C. 17231(p)(2));
(ii) $20,000,000 for energy storage systems
demonstrations as authorized by section
641(p)(4) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17231(p)(4));
and
(iii) $20,000,000 for vehicle energy
storage systems demonstrations as authorized by
section 641(p)(5) of the Energy Independence
and Security Act of 2007 (42 U.S.C.
17231(p)(5)).
(e) Transfer Procedures.--The Secretary shall make an initial
transfer from the Fund no later than 30 days after the initial deposit
of monies into the Fund. The Secretary shall make additional transfers
no later than 30 days after subsequent deposits. If the amount
available to be transferred is less than the levels authorized under
subsection (d), the transfers for each program shall be allocated on a
pro rata basis. If the amount available to be transferred exceeds the
levels authorized under subsection (d), the transfers for each program
shall be increased on a pro rata basis.
(f) Management and Oversight.--
(1) Additionality of fiscal year 2008 transfers.--All
amounts transferred under subsection (d) shall be in addition
to, and shall not be substituted for, any funds appropriated
for the same or similar purposes in the Consolidated
Appropriations Act, 2008.
(2) Excess funds.--The total of all amounts transferred
under subsection (d) and any funds appropriated for the same or
similar purposes in the Consolidated Appropriations Act, 2008
may not exceed the amounts authorized in other Acts for such
purposes. In the event that amounts made available under this
Act plus amounts under the Consolidated Appropriations Act,
2008 exceed the cumulative amounts authorized in other Acts for
any program funded by this Act, the excess amounts shall be
distributed to the other programs funded by this Act on a pro
rata basis.
(3) Program plans and performance measures.--The Secretary
shall prepare and publish in the Federal Register a plan for
the proposed use of all funds authorized in subsection (d). The
plan also shall identify how the use of these funds will be
additive to, and not displace, annual appropriations. The plans
also shall identify performance measures to assess the
additional benefits that may be realized from the application
of the additional funding provided under this section. The
initial plan shall be published in the Federal Register not
later than 90 days after the date of enactment of this Act.
(4) Congressional oversight and review.--Nothing in this
section shall limit or restrict the review and oversight of
program plans by the appropriate committees of Congress.
Nothing in this section shall limit or restrict the authority
of Congress to set alternative spending limitations in annual
appropriations Acts.
(5) Apportionment.--All transactions of the Fund shall be
exempt from apportionment under the provisions of subchapter II
of chapter 15 of title 31, United States Code.
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