The Strategic Petroleum Reserve

GAO discussed issues relating to the Strategic Petroleum Reserve (SPR) and indicated areas for congressional concern and action. Specifically, GAO focused on the SPR fiscal year (FY) 1983 fill rate and the administration's budget request for FY 1984. GAO noted that the administration has made progress in filling the SPR and that under the law a lower fill rate is allowed if the President finds that it would be in the national interest. The administration's present position is to retain the lower fill rate for FY 1983 and to establish even lower rates in future years. GAO suggested that, in making a decision on deferral of funds to FY 1984 which would affect the fill rate, the committee should consider: (1) the positions taken by the Department of Energy and the Office of Management and Budget; (2) the intent of the Energy Emergency Preparedness Act; (3) the impact on SPR inventory; (4) the time saved in increasing the SPR inventory; (5) costs associated with a higher fill rate; (6) and the impacts on the FY 1984 appropriation level. Further, GAO commented that Congress should address: (1) the FY 1984 appropriations level for the Big Hill storage site; (2) the administration's drawdown plans for the SPR under disruptive conditions; and (3) the SPR program in the context of overall preparedness for oil emergencies.