1. U.S. Code
  2. title 42
  3. chapter 77
  4. subchapter I
  5. part B
  6. § 6234

Collapse to view only § 6234. Strategic Petroleum Reserve

§ 6231. Congressional finding and declaration of policy
(a) The Congress finds that the storage of substantial quantities of petroleum products will diminish the vulnerability of the United States to the effects of a severe energy supply interruption, and provide limited protection from the short-term consequences of interruptions in supplies of petroleum products.
(b) It is the policy of the United States to provide for the creation of a Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products to reduce the impact of disruptions in supplies of petroleum products, to carry out obligations of the United States under the international energy program, and for other purposes as provided for in this chapter.
(Pub. L. 94–163, title I, § 151, Dec. 22, 1975, 89 Stat. 881; Pub. L. 106–469, title I, § 103(4), Nov. 9, 2000, 114 Stat. 2029.)

CITE AS: 42 USC 6231

§ 6232. Definitions
As used in this part and part C:
(1) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029.
(2) The term “importer” means any person who owns, at the first place of storage, any petroleum product imported into the United States.
(3) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029.
(4) The term “interest in land” means any ownership or possessory right with respect to real property, including ownership in fee, an easement, a leasehold, and any subsurface or mineral rights.
(5) The term “readily available inventories” means stocks and supplies of petroleum products which can be distributed or used without affecting the ability of the importer or refiner to operate at normal capacity; such term does not include minimum working inventories or other unavailable stocks.
(6) The term “refiner” means any person who owns, operates, or controls the operation of any refinery.
(7) Repealed. Pub. L. 106–469, title I, § 103(5)(A), Nov. 9, 2000, 114 Stat. 2029.
(8) The term “related facility” means any necessary appurtenance to a storage facility, including pipelines, roadways, reservoirs, and salt brine lines.
(9) The term “Reserve” means the Strategic Petroleum Reserve.
(10) The term “storage facility” means any facility or geological formation which is capable of storing significant quantities of petroleum products.
(11) The term “Strategic Petroleum Reserve” means petroleum products stored in storage facilities pursuant to this part.
(Pub. L. 94–163, title I, § 152, Dec. 22, 1975, 89 Stat. 882; Pub. L. 101–383, § 6(a)(1), Sept. 15, 1990, 104 Stat. 729; Pub. L. 106–469, title I, § 103(5), Nov. 9, 2000, 114 Stat. 2029.)

CITE AS: 42 USC 6232

§ 6233. Repealed. Pub. L. 106–469, title I, § 103(6), Nov. 9, 2000, 114 Stat. 2030

CITE AS: 42 USC 6233

§ 6234. Strategic Petroleum Reserve
(a) Establishment
(b) Authority of Secretary
(c) to (e) Repealed. Pub. L. 106–469, title I, § 103(7)(C), Nov. 9, 2000, 114 Stat. 2030
(f) Purpose of drawdown and distribution; requests for funds for storage
(1) The drawdown and distribution of petroleum products from the Strategic Petroleum Reserve is authorized only under section 6241 of this title, and drawdown and distribution of petroleum products for purposes other than those described in section 6241 of this title shall be prohibited.
(2) In the Secretary’s annual budget submission, the Secretary shall request funds for acquisition, transportation, and injection of petroleum products for storage in the Reserve. If no requests for funds are made, the Secretary shall provide a written explanation of the reason therefore.
(Pub. L. 94–163, title I, § 154, Dec. 22, 1975, 89 Stat. 882; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 102–486, title XIV, § 1402, Oct. 24, 1992, 106 Stat. 2994; Pub. L. 105–177, § 1(6), June 1, 1998, 112 Stat. 106; Pub. L. 106–469, title I, § 103(7), Nov. 9, 2000, 114 Stat. 2030.)

CITE AS: 42 USC 6234

§§ 6235 to 6238. Repealed. Pub. L. 106–469, title I, § 103(8)–(11), Nov. 9, 2000, 114 Stat. 2030

CITE AS: 42 USC 6235 to 6238

§ 6239. Development, operation, and maintenance of the Reserve
(a) to (e) Repealed. Pub. L. 106–469, title I, § 103(13)(A), Nov. 9, 2000, 114 Stat. 2030
(f) Powers of Secretary to develop and operate the Strategic Petroleum Reserve
In order to develop, operate, or maintain the Strategic Petroleum Reserve, the Secretary may—
(1) issue rules, regulations, or orders;
(2) acquire by purchase, condemnation, or otherwise, land or interests in land for the location of storage and related facilities;
(3) construct, purchase, lease, or otherwise acquire storage and related facilities;
(4) use, lease, maintain, sell or otherwise dispose of land or interests in land, or of storage and related facilities acquired under this part, under such terms and conditions as the Secretary considers necessary or appropriate;
(5) acquire, subject to the provisions of section 6240 of this title, by purchase, exchange, or otherwise, petroleum products for storage in the Strategic Petroleum Reserve;
(6) store petroleum products in storage facilities owned and controlled by the United States or in storage facilities owned by others if those facilities are subject to audit by the United States;
(7) execute any contracts necessary to develop, operate, or maintain the Strategic Petroleum Reserve;
(8) bring an action, when the Secretary considers it necessary, in any court having jurisdiction over the proceedings, to acquire by condemnation any real or personal property, including facilities, temporary use of facilities, or other interests in land, together with any personal property located on or used with the land.
(g) Acquisition of property by negotiation as prerequisite to condemnation
(h), (i) Repealed. Pub. L. 106–469, title I, § 103(13)(D), Nov. 9, 2000, 114 Stat. 2031
(j) Expansion beyond 700,000,000 barrels
(k) Exemption from subtitle IV of title 49
(l) Rulemaking during drawdown and sale
(Pub. L. 94–163, title I, § 159, Dec. 22, 1975, 89 Stat. 886; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 97–229, § 4(b)(1), (2)(B), Aug. 3, 1982, 96 Stat. 251, 252; Pub. L. 99–58, title I, § 102(a), July 2, 1985, 99 Stat. 102; Pub. L. 101–383, §§ 4(a), 9, 11, Sept. 15, 1990, 104 Stat. 728, 735; Pub. L. 106–469, title I, § 103(12), (13), Nov. 9, 2000, 114 Stat. 2030.)

CITE AS: 42 USC 6239

§ 6240. Petroleum products for storage, transport, or exchange
(a) Eligibility of petroleum products
(b) Objectives in determining manner of acquisitionThe Secretary shall, to the greatest extent practicable, acquire petroleum products for the Reserve in a manner consonant with the following objectives:
(1) minimization of the cost of the Reserve;
(2) Repealed. Pub. L. 106–469, title I, § 103(14)(C), Nov. 9, 2000, 114 Stat. 2031;
(3) minimization of the Nation’s vulnerability to a severe energy supply interruption;
(4) minimization of the impact of such acquisition upon supply levels and market forces; and
(5) encouragement of competition in the petroleum industry.
(c) ProceduresThe Secretary shall develop, with public notice and opportunity for comment, procedures consistent with the objectives of this section to acquire petroleum for the Reserve. Such procedures shall take into account the need to—
(1) maximize overall domestic supply of crude oil (including quantities stored in private sector inventories);
(2) avoid incurring excessive cost or appreciably affecting the price of petroleum products to consumers;
(3) minimize the costs to the Department of the Interior and the Department of Energy in acquiring such petroleum products (including foregone revenues to the Treasury when petroleum products for the Reserve are obtained through the royalty-in-kind program);
(4) protect national security;
(5) avoid adversely affecting current and futures prices, supplies, and inventories of oil; and
(6) address other factors that the Secretary determines to be appropriate.
(d), (e) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031
(f) Predrawdown diversion
(g) Repealed. Pub. L. 106–469, title I, § 103(14)(D), Nov. 9, 2000, 114 Stat. 2031
(h) Purchase from stripper well properties
(1) If the President finds that declines in the production of oil from domestic resources pose a threat to national energy security, the President may direct the Secretary to acquire oil from domestic production of stripper well properties for storage in the Strategic Petroleum Reserve. Except as provided in paragraph (2), the Secretary may set such terms and conditions as he deems necessary for such acquisition.
(2) Crude oil purchased by the Secretary pursuant to this subsection shall be by competitive bid. The price paid by the Secretary—
(A) shall take into account the cost of production including costs of reservoir and well maintenance; and
(B) shall not exceed the price that would have been paid if the Secretary had acquired petroleum products of a similar quality on the open market under competitive bid procedures without regard to the source of the petroleum products.
(Pub. L. 94–163, title I, § 160, Dec. 22, 1975, 89 Stat. 888; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 96–294, title VIII, §§ 801(a), 802(a), 803, June 30, 1980,

CITE AS: 42 USC 6240

§ 6241. Drawdown and sale of petroleum products
(a) Power of Secretary
(b), (c) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031
(d) Presidential finding prerequisite to drawdown and sale
(1) Drawdown and sale of petroleum products from the Strategic Petroleum Reserve may not be made unless the President has found drawdown and sale are required by a severe energy supply interruption or by obligations of the United States under the international energy program.
(2) For purposes of this section, in addition to the circumstances set forth in section 6202(8) of this title, a severe energy supply interruption shall be deemed to exist if the President determines that—
(A) an emergency situation exists and there is a significant reduction in supply which is of significant scope and duration;
(B) a severe increase in the price of petroleum products has resulted from such emergency situation; and
(C) such price increase is likely to cause a major adverse impact on the national economy.
(e) Sales procedures
(1) The Secretary shall sell petroleum products withdrawn from the Strategic Petroleum Reserve at public sale to the highest qualified bidder in the amounts, for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to Federal, State, or local regulations controlling sales of petroleum products.
(2) 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.
(f) Repealed. Pub. L. 106–469, title I, § 103(15)(C), Nov. 9, 2000, 114 Stat. 2031
(g) Directive to carry out test drawdown and sale
(1) The Secretary shall conduct a continuing evaluation of the drawdown and sales procedures. In the conduct of an evaluation, the Secretary is authorized to carry out a test drawdown and sale or exchange of petroleum products from the Reserve. Such a test drawdown and sale or exchange may not exceed 5,000,000 barrels of petroleum products.
(2) Repealed. Pub. L. 106–469, title I, § 103(15)(F)(ii), Nov. 9, 2000, 114 Stat. 2031.
(3) At least part of the crude oil that is sold or exchanged under this subsection shall be sold or exchanged to or with entities that are not part of the Federal Government.
(4) The Secretary may not sell any crude oil under this subsection at a price less than that which the Secretary determines appropriate and, in no event, at a price less than 95 percent of the sales price, as estimated by the Secretary, of comparable crude oil being sold in the same area at the time the Secretary is offering crude oil for sale in such area under this subsection.
(5) The Secretary may cancel any offer to sell or exchange crude oil as part of any test under this subsection if the Secretary determines that there are insufficient acceptable offers to obtain such crude oil.
(6) In the case of a sale of any petroleum products under this subsection, the Secretary shall, to the extent funds are available in the SPR Petroleum Account as a result of such sale, acquire petroleum products for the Reserve within the 12-month period beginning after completion of the sale.
(7) Rules, regulations, or orders issued in order to carry out this subsection which have the applicability and effect of a rule as defined in section 551(4) of title 5 shall not be subject to the requirements of subchapter II of chapter 5 of such title or to section 6393 of this title.
(8)Notice to congress.—
(A)Prior notice.—Not less than 14 days before the date on which a test is carried out under this subsection, the Secretary shall notify both Houses of Congress of the test.
(B)Emergency.—The prior notice requirement in subparagraph (A) shall not apply if the Secretary determines that an emergency exists which requires a test to be carried out, in which case the Secretary shall notify both Houses of Congress of the test as soon as possible.
(C)Detailed description.—
(i)In general.—Not later than 180 days after the date on which a test is completed under this subsection, the Secretary shall submit to both Houses of Congress a detailed description of the test.
(ii)Report.—A detailed description submitted under clause (i) may be included as part of a report made to the President and Congress under section 6245 of this title.
(h) Prevention or reduction of adverse impact of severe domestic energy supply interruptions
(1) If the President finds that—
(A) a circumstance, other than those described in subsection (d), exists that constitutes, or is likely to become, a domestic or international energy supply shortage of significant scope or duration;
(B) action taken under this subsection would assist directly and significantly in preventing or reducing the adverse impact of such shortage;
(C) the Secretary has found that action taken under this subsection will not impair the ability of the United States to carry out obligations of the United States under the international energy program; and
(D) the Secretary of Defense has found that action taken under this subsection will not impair national security,
then the Secretary may, subject to the limitations of paragraph (2), draw down and sell petroleum products from the Strategic Petroleum Reserve.
(2) Petroleum products from the Reserve may not be drawn down under this subsection—
(A) in excess of an aggregate of 30,000,000 barrels with respect to each such shortage;
(B) for more than 60 days with respect to each such shortage;
(C) if there are fewer than 252,400,000 barrels of petroleum product stored in the Reserve; or
(D) below the level of an aggregate of 252,400,000 barrels of petroleum product stored in the Reserve.
(3) During any period in which there is a drawdown and sale of the Reserve in effect under this subsection, the Secretary shall transmit a monthly report to the Congress containing an account of the drawdown and sale of petroleum products under this subsection and an assessment of its effect.
(4) In no case may the drawdown under this subsection be extended beyond 60 days with respect to any domestic energy supply shortage.
(i) Exchange of withdrawn products
(j) Purchases from Strategic Petroleum Reserve by entities in insular areas of United States and Freely Associated States
(1) DefinitionsIn this subsection:
(A) Binding offer
(B) Category of petroleum product
(C) Eligible entity
(D) Full tanker load
(E) Insular area
(F) Offering
(G) Notice of saleThe term “notice of sale” means the document that announces—
(i) the sale of Strategic Petroleum Reserve products;
(ii) the quantity, characteristics, and location of the petroleum product being sold;
(iii) the delivery period for the sale; and
(iv) the procedures for submitting offers.
(2) In generalIn the case of an offering of a quantity of petroleum product during a drawdown of the Strategic Petroleum Reserve—
(A) the State of Hawaii, in addition to having the opportunity to submit a competitive bid, may—
(i) submit a binding offer, and shall on submission of the offer, be entitled to purchase a category of a petroleum product specified in a notice of sale at a price equal to the volumetrically weighted average of the successful bids made for the remaining quantity of the petroleum product within the category that is the subject of the offering; and
(ii) submit one or more alternative offers, for other categories of the petroleum product, that will be binding if no price competitive contract is awarded for the category of petroleum product on which a binding offer is submitted under clause (i); and
(B) at the request of the Governor of the State of Hawaii, a petroleum product purchased by the State of Hawaii at a competitive sale or through a binding offer shall have first preference in scheduling for lifting.
(3) Limitation on quantity
(A) In general
(B) Portion of quantity of previous imports
(C) Percentage of offering
(4) Adjustments
(A) In general
(B) Upward adjustmentThe Secretary shall adjust upward to the next whole number increment of a full tanker load if the quantity to be sold is—
(i) less than 1 full tanker load; or
(ii) greater than or equal to 50 percent of a full tanker load more than a whole number increment of a full tanker load.
(C) Downward adjustment
(5) Delivery to other locations
(6) Standard sales provisions
(7) Eligible entities
(A) In general
(B) Limitation
(C) Barred company
(8) Supplies of petroleum products
(Pub. L. 94–163, title I, § 161, Dec. 22, 1975, 89 Stat. 888; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 99–58, title I, § 103(a), (b)(2), July 2, 1985, 99 Stat. 103, 104; Pub. L. 101–383, §§ 3(b), 8, 10, Sept. 15, 1990, 104 Stat. 727, 735; Pub. L. 102–486, title XIV, § 1401, Oct. 24, 1992, 106 Stat. 2993; Pub. L. 105–388, § 9(a), Nov. 13, 1998, 112 Stat. 3482; Pub. L. 106–469, title I, § 103(15), Nov. 9, 2000, 114 Stat. 2031; Pub. L. 114–74, title IV, § 401(a), Nov. 2, 2015, 129 Stat. 588; Pub. L. 114–255, div. A, title V, § 5010(c), Dec. 13, 2016, 130 Stat. 1198; Pub. L. 115–123, div. C, title II, § 30204(c), Feb. 9, 2018, 132 Stat. 127; Pub. L. 115–141, div. O, title V, § 501(c), Mar. 23, 2018, 132 Stat. 1080; Pub. L. 117–58, div. I, § 90002(c)(2), Nov. 15, 2021, 135 Stat. 1342.)

CITE AS: 42 USC 6241

§ 6242. Coordination with import quota system

No quantitative restriction on the importation of any petroleum product into the United States imposed by law shall apply to volumes of any such petroleum product imported into the United States for storage in the Reserve.

(Pub. L. 94–163, title I, § 162, Dec. 22, 1975, 89 Stat. 889.)

CITE AS: 42 USC 6242

§ 6243. Records and accounts
(a) Preparation and maintenance
(b) Audit of operations of storage facility
(c) Access to and inspection of records or accounts and storage facilities
(Pub. L. 94–163, title I, § 163, Dec. 22, 1975, 89 Stat. 889; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288.)

CITE AS: 42 USC 6243

§ 6244. Repealed. Pub. L. 106–469, title I, § 103(16), Nov. 9, 2000, 114 Stat. 2032

CITE AS: 42 USC 6244

§ 6245. Annual report
The Secretary shall report annually to the President and the Congress on actions taken to implement this part. This report shall include—
(1) the status of the physical capacity of the Reserve and the type and quantity of petroleum products in the Reserve;
(2) an estimate of the schedule and cost to complete planned equipment upgrade or capital investment in the Reserve, including upgrades and investments carried out as part of operational maintenance or extension of life activities;
(3) an identification of any life-limiting conditions or operational problems at any Reserve facility, and proposed remedial actions including an estimate of the schedule and cost of implementing those remedial actions;
(4) a description of current withdrawal and distribution rates and capabilities, and an identification of any operational or other limitations on those rates and capabilities;
(5) a listing of petroleum product acquisitions made in the preceding year and planned in the following year, including quantity, price, and type of petroleum;
(6) a summary of the actions taken to develop, operate, and maintain the Reserve;
(7) a summary of the financial status and financial transactions of the Strategic Petroleum Reserve and Strategic Petroleum Reserve Petroleum Accounts for the year;
(8) a summary of expenses for the year, and the number of Federal and contractor employees;
(9) the status of contracts for development, operation, maintenance, distribution, and other activities related to the implementation of this part;
(10) a summary of foreign oil storage agreements and their implementation status;
(11) any recommendations for supplemental legislation or policy or operational changes the Secretary considers necessary or appropriate to implement this part.
(Pub. L. 94–163, title I, § 165, Dec. 22, 1975, 89 Stat. 889; Pub. L. 95–619, title VI, § 691(b)(2), Nov. 9, 1978, 92 Stat. 3288; Pub. L. 97–35, title X, § 1035(a), Aug. 13, 1981, 95 Stat. 620; Pub. L. 99–509, title III, § 3203, Oct. 21, 1986, 100 Stat. 1890; Pub. L. 104–66, title I, § 1051(j), Dec. 21, 1995, 109 Stat. 717; Pub. L. 106–469, title I, § 103(17), Nov. 9, 2000, 114 Stat. 2032.)

CITE AS: 42 USC 6245

§ 6246. Authorization of appropriations

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this part and part D, to remain available until expended.

(Pub. L. 94–163, title I, § 166, as added Pub. L. 109–58, title III, § 301(a)(1), Aug. 8, 2005, 119 Stat. 683.)

CITE AS: 42 USC 6246

§ 6247. SPR Petroleum Account
(a) Establishment
(b) Obligation of funds for acquisition, transportation, and injection of petroleum products into SPR
Amounts in the Account may be obligated by the Secretary of Energy for the acquisition, transportation, and injection of petroleum products into the Strategic Petroleum Reserve, for test sales of petroleum products from the Reserve, and for the drawdown, sale, and delivery of petroleum products from the Reserve—
(1) Repealed. Pub. L. 106–469, title I, § 103(19)(A)(ii), Nov. 9, 2000, 114 Stat. 2033;
(2) in the case of any fiscal year, subject to section 7270 of this title, in such aggregate amounts as may be appropriated in advance in appropriation Acts; and
(3) in the case of any fiscal year, notwithstanding section 7270 of this title, in an aggregate amount equal to the aggregate amount of the receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 6241 of this title, including a drawdown and distribution carried out under subsection (g) of such section, or from the sale of petroleum products under section 6240(f) of this title.
Funds available to the Secretary of Energy for obligation under this subsection may remain available without fiscal year limitation.
(c) Provision and deposit of funds
(d) Off-budgeting procedures
The Account, the deposits and withdrawals from the Account, and the transactions, receipts, obligations, outlays associated with such deposits and withdrawals (including petroleum product purchases and related transactions), and receipts to the United States from the sale of petroleum products in any drawdown and distribution of the Strategic Petroleum Reserve under section 6241 of this title, including a drawdown and distribution carried out under subsection (g) of such section, and from the sale of petroleum products under section 6240(f) of this title—
(1) shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States; and
(2) shall not be deemed to be budget authority, spending authority, budget outlays, or Federal revenues for purposes of title III of Public Law 93–344, as amended [2 U.S.C. 631 et seq.].
(Pub. L. 94–163, title I, § 167, as added Pub. L. 97–35, title X, § 1034(a)(1), Aug. 13, 1981, 95 Stat. 619; amended Pub. L. 97–229, § 4(b)(2)(A), Aug. 3, 1982, 96 Stat. 251; Pub. L. 99–58, title I, § 103(b)(3), (4), July 2, 1985, 99 Stat. 104; Pub. L. 101–383, § 5(b)(1), (2), Sept. 15, 1990, 104 Stat. 729; Pub. L. 102–486, title XIV, § 1404(b)(1), Oct. 24, 1992, 106 Stat. 2995; Pub. L. 106–469, title I, § 103(19), Nov. 9, 2000, 114 Stat. 2033.)

CITE AS: 42 USC 6247

§ 6247a. Use of underutilized facilities
(a) Authority
(b) Protection of facilities
(c) Access to stored oil
(d) Availability of funds
(Pub. L. 94–163, title I, § 168, as added Pub. L. 105–33, title IX, § 9303(a), Aug. 5, 1997, 111 Stat. 676.)

CITE AS: 42 USC 6247a

§ 6247b. Purchase of oil from marginal wells
(a) In general
(b) Definition of marginal well
(Pub. L. 94–163, title I, § 169, as added Pub. L. 106–469, title III, § 301(a), Nov. 9, 2000, 114 Stat. 2037.)

CITE AS: 42 USC 6247b