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Inserts a new section 164 in the Energy Policy and Conservation Act after section 163 (42 U.S.C. 6243) that prohibits export or sale of petroleum products drawn down from the Strategic Petroleum Reserve to specified countries and entities, provides for a national-security waiver by the Secretary, and requires a rulemaking within 60 days of enactment.
Amends section 161(a) of the Energy Policy and Conservation Act by inserting additional text before the final period of subsection (a) (the insertion text is not provided in the section).
Amends section 101(b) of the Consolidated Appropriations Act, 2016 (42 U.S.C. 6212a(b)) by inserting additional text after an unspecified location (the exact insertion text/location is not provided in the section).
Prohibits exports or sales of petroleum products taken from the Strategic Petroleum Reserve (SPR) to certain specified foreign countries and to entities controlled by those countries or by the Chinese Communist Party, while allowing the Secretary to waive the ban for national security reasons. It requires the Secretary to issue an implementing rule within 60 days of enactment and makes conforming and clerical adjustments to existing law. The measure restricts who can receive SPR petroleum, creates a short regulatory timeline for DOE to implement the change, and preserves a national-security waiver that the Secretary may use in specific circumstances.
Insert a new section (titled “164 Prohibition on certain exports”) into the Energy Policy and Conservation Act immediately after section 163 (42 U.S.C. 6243).
The Secretary shall prohibit the export or sale of petroleum products drawn down from the Strategic Petroleum Reserve (SPR) to the following: (1) the People’s Republic of China; (2) the Democratic People’s Republic of Korea; (3) the Russian Federation; (4) the Islamic Republic of Iran; and (5) any entity that is under the ownership or control of a country listed in (1)–(4) or the Chinese Communist Party.
The Secretary may waive the prohibition if the Secretary certifies that the export or sale authorized by the waiver is in the national security interests of the United States.
The Secretary must issue a rule to carry out this section not later than 60 days after the date of enactment.
Amend Section 161(a) of the Energy Policy and Conservation Act (42 U.S.C. 6241(a)) by inserting text before the period at the end (conforming amendment related to drawdown and sale of petroleum products).
Who is affected and how:
Entities organized under the laws of the People’s Republic of China and other targeted foreign purchasers: Directly restricted from receiving petroleum taken from the SPR; they would be barred from purchases or imports tied to SPR sales unless a national-security waiver is granted.
Foreign persons and non-U.S. purchasers generally: Those in the specified countries or controlled entities would be excluded from SPR-sourced supplies, which could require them to secure alternative sources.
United States entities and businesses that might buy or broker SPR petroleum: Must comply with the new ban and updated DOE rules; may face reduced market options when dealing with buyers from targeted countries or controlled entities.
Producers and U.S. energy market participants: Indirectly affected through potential shifts in demand patterns and price signals if SPR supplies are restricted to particular destinations; the effect is likely modest because SPR releases are episodic.
American consumers: Could see indirect effects on domestic fuel prices if the restriction materially alters supply dynamics in emergency or drawdown scenarios, though the magnitude is uncertain and depends on market conditions and DOE waiver use.
Department of Energy and SPR managers: Face administrative and legal duty to complete rulemaking within 60 days, implement enforcement procedures, and manage waiver decisions; this creates near-term regulatory workload.
Diplomacy and trade relations: The ban targets specific foreign actors and CCP-controlled entities, which may raise diplomatic tensions or prompt reciprocal measures, depending on implementation and enforcement.
Overall, the legislation is a targeted export restriction that places new compliance responsibilities on DOE and market participants, while preserving an executive waiver for national-security needs. The immediate technical impact is administrative (rulemaking and enforcement); broader market or diplomatic impacts depend on how the prohibition and the waiver are applied in practice.
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Read twice and referred to the Committee on Energy and Natural Resources.
Introduced February 4, 2025 by John Karl Fetterman · Last progress February 4, 2025
Read twice and referred to the Committee on Energy and Natural Resources.
Introduced in Senate