U.S. Sen. Bill Cassidy (R-LA) and U.S. House Republican Whip Steve Scalise (R-LA) recently introduced a bipartisan, bicameral bill that would authorize the U.S. Energy Secretary to carry out a program for leasing underused facilities of the Strategic Petroleum Reserve (SPR).
“As the world’s largest oil and gas producer, the U.S. should continue to maximize its spare capacity at the Strategic Petroleum Reserve,” Sen. Cassidy said. “Using future cavern space through a commercial leasing program can generate sustainable revenues for the U.S. Treasury, greater returns for the taxpayer, and ensure the long-term operational capacity of the SPR.”
Sen. Cassidy on May 21 sponsored the Strategic Petroleum Reserve (SPR) Reform Act, S. 3816, while Rep. Scalise on May 26 sponsored the same-named H.R. 7019 with cosponsor U.S. Rep. Henry Cuellar (D-TX). The measure would authorize the Energy Secretary to establish a program to lease up to 200 million barrels of unutilized storage space in the SPR.
“I’m pleased to join Rep. Cuellar and Senator Cassidy in introducing the Strategic Petroleum Reserve (SPR) Reform Act, a bill that will allow the Department of Energy to more efficiently lease unused storage space in the SPR,” Rep. Scalise said. “The SPR is the largest stockpile of crude oil in the world and an important national security asset, and as shown by the current energy crisis, the SPR plays an important role in managing the supply of oil in times of scarcity and also oversupply.”
If enacted, the Strategic Petroleum Reserve Reform Act also would require the U.S. Department of Energy (DOE) to identify appropriate SPR storage facilities to lease; identify and implement changes to facilities or operations necessary to implement a leasing program; make such facilities available for lease; and identify environmental effects of leasing storage facilities, according to a bill summary provided by the lawmakers.
Among other provisions, the bill also would direct DOE to use funds in the Energy Security and Infrastructure Modernization Fund for the facility and operational improvements necessary to prepare SPR facilities for lease, according to the summary.