US Federal House Bill HB432

US Federal 2023-2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23
• Refer: 1/27/23

Caption

Buy Low and Sell High Act This bill revises requirements concerning the Strategic Petroleum Reserve (SPR) and sets forth provisions to reduce the demand for petroleum fuel and increase fuel supply. For example, 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 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. Further, the bill establishes provisions concerning electrifying the transportation sector, zero-emission vehicles, and a program to increase the amount of crude oil refined in oil refineries in certain countries in the Western Hemisphere.

Impact

The proposed legislation represents a significant shift in how petroleum reserves are managed, moving towards a more proactive stance that allows for quicker response to changes in the fuel market. Additionally, it mandates a reevaluation of storage capacities and conditions under which petroleum products can be sold or exported. By increasing the capacity of reserves and specifying conditions about the sale and export of petroleum, the bill aims to stabilize fuel prices and improve the resilience of the fuel supply infrastructure in the face of market disruptions or emergencies.

Summary

House Bill 432, titled the 'Buy Low and Sell High Act', seeks to modernize the United States' approach to managing its petroleum reserves and to encourage the use of alternative energy within the transportation sector. The bill proposes establishing an Economic Petroleum Reserve consisting of up to 350 million barrels of crude oil, primarily to be maintained in the Strategic Petroleum Reserve (SPR). It also calls for the creation of a national network of Strategic Refined Petroleum Product Reserves to hold gasoline and diesel fuel, which would ensure availability during fuel supply disruptions in designated areas across the country.

Contention

There are notable points of contention surrounding the bill, particularly concerning the implications it may have on existing energy policies, the environment, and commitments to reduce reliance on fossil fuels. Opponents may argue that while the bill seeks to address short-term fuel supply issues, it could undermine efforts to transition towards more sustainable energy practices by promoting continued investment in fossil fuel infrastructure, such as the establishment of additional reserves. The tensions lie in balancing immediate economic needs with long-term environmental sustainability and energy independence.