Us Congress Senate Bill SB11

Us Congress 2023-2024 Regular Session

• Introduced: 1/23/23
• Refer: 1/23/23

Caption

Secure Auction For Energy Reserves Act of 2023 or the SAFER Act of 2023 This bill limits the sale and exportation of petroleum products (e.g., crude oil) from the Strategic Petroleum Reserve (SPR). Specifically, the bill directs the Department of Energy (DOE) to require, as a condition of auction sales, that the petroleum products not be exported to countries that are designated as countries of particular concern for religious freedom under the International Religious Freedom Act of 1998. In addition, the bill establishes limits on auction sales of petroleum products from the SPR to state-owned entities if DOE determines that, as of the dates of the auctions, there are bans on, or the imposition of sanctions by the United States with respect to, the purchase of crude oil from countries. Under such circumstances, state-owned entities must certify that they have not purchased petroleum products from countries subject to such bans or sanctions later than 15 days after the date on which the ban or sanctions went into effect in order to be able to bid in auctions. If DOE determines state-owned entities participating in the auctions have purchased crude oil from such countries after that time period, then DOE may not sell petroleum products from the SPR to such entities.

Impact

The passage of SB11 has the potential to reshape the operational framework surrounding the Strategic Petroleum Reserve. The new requirements mean that state-owned entities bidding in auctions would need to certify their purchasing history concerning countries under U.S. sanctions. This could hinder the access of certain international entities to U.S. petroleum products while simultaneously aligning energy sales with American foreign policy strategies. As a result, it exemplifies a regulatory approach that prioritizes economic and diplomatic considerations in the energy sector.

Summary

SB11, known as the Secure Auction For Energy Reserves Act of 2023 (SAFER Act), proposes significant modifications to the Energy Policy and Conservation Act. The bill specifically mandates that the Secretary of Energy impose conditions on the sale of petroleum products from the Strategic Petroleum Reserve (SPR). These conditions include prohibiting exports to designated countries that are recognized for concerns related to religious freedom, thereby limiting where these resources can ultimately go. This change seeks to address geopolitical concerns and economic behavior in the energy market by restricting engagement with certain regimes.

Contention

There may be contention surrounding the implementation of SB11, particularly regarding the complexities it introduces to the auction process for the SPR. Critics might argue that the additional certification requirements could discourage participation from legitimate bidders who are unable to comply with the new stipulations. Furthermore, concerns regarding the practicality of tracking the purchasing behavior of state-owned entities could arise, raising questions about the administrability of these requirements. Proponents, however, may defend the bill as a necessary step to ensure that U.S. energy resources are not inadvertently supporting regimes that engage in actions contrary to U.S. interests.