S.Amdt. 5447

SA 5447. Mr. KENNEDY submitted an amendment intended to be proposed
to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to
provide for reconciliation pursuant to title II of S. Con. Res. 14;
which was ordered to lie on the table; as follows:

At the appropriate place in part 7 of subtitle A of title
V, insert the following:

SEC. 5017_. PRICING PREFERENCE FOR DOMESTIC ENTITIES IN SALE
OF DRAWDOWNS FROM STRATEGIC PETROLEUM RESERVE.

(a) Definitions.--Section 152 of the Energy Policy and
Conservation Act (42 U.S.C. 6232) is amended--
(1) by striking paragraph (5);
(2) by redesignating paragraphs (4), (6), (8), (9), (10),
and (11) as paragraphs (3), (5), (6), (7), (8), and (9),
respectively;
(3) in each of paragraphs (3) through (9) (as so
redesignated), by inserting a paragraph heading, the text of
which comprises the term defined in the paragraph;
(4) by inserting after paragraph (3) (as so redesignated)
the following:
``(4) Qualified bidder.--The term `qualified bidder' means
an individual or entity that--
``(A) submits to the Secretary an offer to purchase
petroleum products withdrawn from the Reserve and offered for
sale pursuant to section 161; and
``(B) meets such criteria as the Secretary determines to be
appropriate to participate in that sale.''; and
(5) by striking the section designation and heading and all
that follows through ``(2) The term'' and inserting the
following:

``SEC. 152. DEFINITIONS.

``In this part and part C:
``(1) Domestic entity.--The term `domestic entity' means a
commercial entity that, as determined by the Secretary--
``(A) is headquartered in the United States; and
``(B) purchases or sells petroleum products in the United
States.
``(2) Importer.--The term''.
(b) Pricing Preference for Domestic Entities.--Section 161
of the Energy Policy and Conservation Act (42 U.S.C. 6241) is
amended--
(1) in subsection (a), by striking ``the provisions of'';
(2) in subsection (d)--
(A) by striking ``(d)(1) Drawdown'' and inserting the
following:
``(b) Prerequisite Presidential Finding.--
``(1) In general.--A drawdown''; and
(B) in paragraph (2)--
(i) by striking ``(2) For purposes'' and inserting the
following:
``(2) Factors for deemed existence.--For purposes''; and
(ii) by indenting subparagraphs (A) through (C)
appropriately;
(3) in subsection (e)--
(A) by striking paragraph (2) and inserting the following:
``(3) Cancellations.--The Secretary may cancel, in whole or
in part, any offer to sell petroleum products as part of any
drawdown and sale under this section.''; and
(B) by striking ``(e)(1) The Secretary'' and all that
follows through the end of paragraph (1) and inserting the
following:
``(c) Procedure for Sales.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall sell petroleum products withdrawn from the Strategic
Petroleum Reserve--
``(A) at public sale;
``(B) after providing public notice of each sale;
``(C) for such period as the Secretary considers to be
appropriate; and
``(D) without regard to Federal, State, or local
regulations relating to sales of petroleum products.
``(2) Pricing.--The Secretary shall--
``(A) establish the price for each sale of petroleum
products withdrawn from the Reserve; and
``(B) sell the petroleum products to the qualified bidder
offering the highest bid, subject to the condition that
pricing preference shall be given to qualified bidders that
are domestic entities, in accordance with subsection (d).'';
(4) by inserting after subsection (c) (as so redesignated)
the following:
``(d) Pricing Preference for Domestic Entities.--
``(1) In general.--Notwithstanding any other provision of
law, in each sale under this section of petroleum products
withdrawn from the Reserve, the Secretary shall provide to
qualified bidders that are domestic entities a pricing
preference in accordance with paragraph (2).
``(2) Mechanism for adjustment.--To provide pricing
preference required by paragraph (1) in conducting a sale
under this section the Secretary shall, in accordance with
subsection (c)--
``(A) accept bids from all qualified bidders; but
``(B) in evaluating the accepted bids to identify the
highest bidder, add to the bid price offered by each
qualified bidder that is a domestic entity--
``(i) for a domestic entity that is a small business
concern (as defined in section 3 of the Small Business Act
(15 U.S.C. 632)), an amount equal to the product obtained by
multiplying--

``(I) the amount of the bid price offered by that domestic
entity; and
``(II) 15 percent; and

``(ii) for a domestic entity that is not a small business
concern described in clause (i), an amount equal to the
product obtained by multiplying--

``(I) the amount of the bid price offered by that domestic
entity; and
``(II) 10 percent.

``(3) Effect of subsection.--Nothing in this subsection--
``(A) requires the Secretary to sell petroleum products
withdrawn from the Reserve to a domestic entity if the
highest bid received from a qualified bidder that is a
domestic entity, as adjusted pursuant to paragraph (2), is
lower than a bid received from a qualified bidder that is not
a domestic entity; or
``(B) modifies, supercedes, or otherwise affects the
application of, or any requirement under, subsection (h).'';
(5) in subsection (g)--
(A) by striking the subsection designation and all that
follows through ``Such a'' in the third sentence of paragraph
(1) and inserting the following:
``(e) Evaluation; Test Drawdowns.--
``(1) Evaluation.--The Secretary shall conduct a continuing
evaluation of the drawdown and sales procedures under this
section, including the application of the pricing preference
for domestic entities under subsection (d).
``(2) Test drawdowns.--In conducting an evaluation under
paragraph (1), the Secretary may carry out a test drawdown
and sale or exchange of petroleum products from the Reserve,
subject to the condition that such a'';
(B) in paragraph (4), by inserting ``, subject to the
condition that pricing preference may be provided to domestic
entities in accordance with subsection (d), as the Secretary

[[Page S4345]]

determines to be appropriate'' before the period at the end;
and
(C) by indenting paragraph (6) appropriately;
(6) in subsection (h)(1)--
(A) by striking the undesignated matter following
subparagraph (D);
(B) by striking ``(h)(1) If'' and inserting the following:
``(f) Presidential Finding on Shortages.--
``(1) In general.--Subject to paragraph (2) and subsection
(d), the Secretary may drawdown and sell petroleum products
from the Strategic Petroleum Reserve if'';
(C) in subparagraph (A), by striking ``subsection (d)'' and
inserting ``subsection (b)'';
(D) by indenting subparagraphs (A) and (B) appropriately;
and
(E) in subparagraph (D), by striking the comma at the end
and inserting a period;
(7) by redesignating subsections (i) and (j) as subsections
(g) and (h), respectively; and
(8) in paragraph (2) of subsection (h) (as so
redesignated), in the paragraph heading, by striking ``In
general'' and inserting ``State of hawai'i''.
(c) Technical and Conforming Amendments.--
(1) Section 154 of the Energy Policy and Conservation Act
(42 U.S.C. 6234) is amended--
(A) by striking subsection (f) and inserting the following:
``(c) Drawdown and Distribution.--
``(1) In general.--The drawdown and distribution of
petroleum products from the Strategic Petroleum Reserve is
authorized only in accordance with section 161.
``(2) Prohibition.--A drawdown and distribution of
petroleum products for purposes other than the objectives
described in section 160(b) shall be prohibited.
``(3) Request of funds.--
``(A) In general.--In the annual budget submission of the
Secretary, the Secretary shall request funds for acquisition,
transportation, and injection of petroleum products for
storage in the Reserve.
``(B) No request.--If no request for funds is submitted
under subparagraph (A) for a fiscal year, the Secretary shall
provide a written explanation of the reasons why no request
was submitted.'';
(B) in subsection (b), by striking ``(b) The Secretary''
and inserting the following:
``(b) Authority of Secretary.--The Secretary''; and
(C) by striking the section designation and heading and all
that follows through ``shall be created'' in subsection (a)
and inserting the following:

``SEC. 154. STRATEGIC PETROLEUM RESERVE.

``(a) Establishment.--A Strategic Petroleum Reserve for the
storage of up to 1,000,000,000 barrels of petroleum products
shall be established''.
(2) Section 160 of the Energy Policy and Conservation Act
(42 U.S.C. 6240) is amended--
(A) in subsection (b)--
(i) in the matter preceding paragraph (1)--

(I) by striking ``following objectives:'' and inserting
``objectives of--''; and
(II) by striking ``(b) The Secretary shall, to the
greatest'' and inserting the following:

``(b) Objectives for Acquisitions.--The Secretary shall, to
the maximum'';
(ii) by inserting after paragraph (1) the following:
``(2) support of domestic entities by providing pricing
preference in accordance with section 161(d);''; and
(iii) by indenting paragraphs (1), (3), (4), and (5)
appropriately;
(B) in subsection (f)--
(i) by striking ``the Reserve and may sell'' and inserting
the following: ``the Reserve; and
``(2) subject to section 161(d), may sell'';
(ii) by striking ``the Secretary may suspend'' and
inserting the following: ``the Secretary--
``(1) may suspend''; and
(iii) by striking ``(f) If the'' and inserting the
following:
``(d) Imminent Severe Energy Supply Interruptions.--If
the'';
(C) in subsection (h)--
(i) in paragraph (2)--

(I) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and indenting the clauses
appropriately; and
(II) in the matter preceding clause (i) (as so
redesignated), in the second sentence, by striking ``The
price paid by the Secretary--'' and inserting the following:

``(B) Price.--The price paid by the Secretary for an
acquisition pursuant to this subsection--''; and

(III) by striking ``(2) Crude oil'' and inserting the
following:

``(2) Pricing for acquisitions.--
``(A) Competitive bid.--Crude oil'';
(ii) in paragraph (1), by striking the second sentence and
inserting the following:
``(B) Terms and conditions.--Subject to paragraph (2), the
Secretary may establish such terms and conditions for an
acquisition pursuant to this subsection as the Secretary
determines to be necessary.''; and
(iii) by striking ``(h)(1) If'' and inserting the
following:
``(e) Declines in Domestic Oil Production.--
``(1) Directed acquisitions.--
``(A) In general.--If''; and
(D) by striking the section designation and heading and all
that follows through ``(a) The Secretary'' and inserting the
following:

``SEC. 160. PETROLEUM PRODUCTS FOR STORAGE IN THE RESERVE.

``(a) Authority of Secretary.--The Secretary''.
(3) Section 167 of the Energy Policy and Conservation Act
(42 U.S.C. 6247) is amended--
(A) in subsection (b)--
(i) in paragraph (3)--

(I) by striking ``subsection (g) of such section'' and
inserting ``subsection (e) of that section''; and
(II) by striking ``section 160(f)'' and inserting ``section
160(d)'';

(ii) by redesignating paragraphs (2) and (3) as
subparagraphs (A) and (B), respectively, and indenting the
subparagraphs appropriately;
(iii) in the undesignated matter following subparagraph (B)
(as so redesignated), by striking ``Funds'' and inserting the
following:
``(2) Availability.--Funds''; and
(iv) by striking ``(b) Amounts'' and inserting the
following:
``(b) Obligation of Amounts.--
``(1) In general.--Amounts''; and
(B) in subsection (d), in the matter preceding paragraph
(1)--
(i) by striking ``subsection (g) of such section'' and
inserting ``subsection (e) of that section''; and
(ii) by striking ``section 160(f)'' and inserting ``section
160(d)''.
(4) Section 168(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6247a(a)) is amended, in the first sentence,
by striking ``product owned'' and inserting ``products
owned''.
(5) The table of contents of the Energy Policy and
Conservation Act (42 U.S.C. 6201 note; Public Law 94-163) is
amended by striking the items relating to the second part D
of title I (relating to expiration) and the second section
181 (relating to expiration).
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