Buy Low and Sell High Act
This bill revises requirements concerning the Strategic Petroleum Reserve (SPR), establishes an Economic Petroleum Reserve, creates a national network of Strategic Refined Petroleum Product Reserves, increases the size of the Northeast Home Heating Oil Reserve, limits the sale and exportation of petroleum products, and sets forth provisions to reduce the demand for petroleum fuel and increase fuel supply.
Specifically, the bill directs the Department of Energy (DOE) to establish within the SPR an Economic Petroleum Reserve of up to 350 million barrels of crude oil. DOE may acquire crude oil from domestic producers at low prices and then sell the oil when the prices are high as specified by the bill.
DOE must also establish a national network of Strategic Refined Petroleum Product Reserves to store up to 250 million barrels of gasoline and diesel fuel, which may be sold when there is a severe fuel supply interruption within the district in which the reserve is located.
In addition, the bill increases the cap on the amount of barrels of petroleum distillate that may be stored in the Northeast Home Heating Oil Reserve from two million to four million.
It also establishes limits on the sale and exportation of petroleum products from such reserves. For example, the bill prohibits the sale or export of fuel from the reserves to (1) China, North Korea, Russia, or Iran; (2) any other country under U.S. sanctions; or (3) any entity owned, controlled, or influenced by one of those countries or the Chinese Communist Party. However, DOE may issue a waiver of the prohibition if it is in the national security interests of the United States to allow such a sale or export.
Finally, the bill establishes requirements and incentives to reduce fuel demand and increase fuel supply, including by (1) providing financial assistance for projects to electrify the transportation sector, (2) setting requirements concerning the minimum percentage of federal vehicles that must be zero-emission vehicles, and (3) directing DOE to establish a program to increase the amount of crude oil refined in oil refineries in certain countries in the Western Hemisphere.
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